Axa Private Equity has entered into an agreement granting exclusivity with Omnova Solutions with a view to selling, before 31 December 2010, its majority shareholding in Eliokem, a chemical company, for a total valuation of EUR227.5m.
The proposed transaction remains subject to execution of a definitive agreement, customary anti-trust approvals and financing conditions.
Eliokem’s central works council is currently being informed and consulted in order to deliver a final opinion on the proposed transaction.
Axa Private Equity acquired its majority stake in Eliokem in October 2006.
Eliokem supplies its products to a range of end markets and applications, such as decorative paints and coatings, oilfield chemicals, cementing, rubber, plastics, automotive, textiles and toners.
Omnova Solutions is a provider of emulsion polymers, specialty chemicals and decorative and functional surfaces.
Eliokem’s 12 month sales through May 2010 were EUR194m, with a strong geographical diversification – around 45 per cent of its sales volumes being originated from regions such as China, India, the Middle East, Korea, South East Asia and Oceania.
Eliokem acquired Apar Industries’ Indian polymer division for INR1.1bn (USD27.5m) in early 2008, built a second Chinese manufacturing platform in Shanghai Chemical Industry Park and increased capacity in France with a new unit dedicated to water-based resins.
Thibault Basquin (pictured), director, and Bruno Ladrière, managing director, of Axa Private Equity’s LBO mid cap team, said: “We have enjoyed our partnership with Eliokem and its executives and have given them the committed support that embodies Axa Private Equity’s reputation. Eliokem’s success demonstrates the ability we have to grow companies with the help of our international network. Its strategy of penetrating new territories and end-markets, both organically and externally, has proven to be successful and is widely recognised by the market.”
