AXA Private Equity has signed an agreement with Bain Capital to acquire a majority stake in the chemicals group Novacap for an enterprise value of approximately EUR240 million, with the support of Novacap’s existing management team, headed by its CEO Pierre Luzeau.
This is the latest in a series of transactions in the chemicals industry for AXA Private Equity and follows the acquisition and then exit of Eliokem (France). The firm also has CABB (Germany) and Unipex (France-Canada) in its current portfolio.
Novacap is a diversified group headquartered in Lyon (France), producing and selling mineral and organic chemical products, with a turnover of ca. EUR 470 million in 2010. It employs around 470 people across its industrial units. Novacap markets its products in a diverse range of industry sectors, including beverage glass packaging, flat glass, chemical and energy, pharmaceuticals, environment (flue gas & water treatment), animal feed, detergent, automotive and construction.
Novacap was created in January 2003 when Bain Capital completed a carve-out from Rhodia of some of its intermediate chemicals and industrial mining activities. Under Bain Capital’s ownership, Novacap has increased its sales while remaining resilient through the economic crisis. Since 2009, Novacap has accelerated its diversification in high value-added areas and has invested ca. EUR 30 million in new operating units to support these growth projects.
Thibault Basquin (pictured), Director at AXA Private Equity, says: “We will give Novacap the committed support that embodies AXA Private Equity’s reputation. Our intention is to assist the company in developing new applications and implementing an active build-up strategy within complementary activities, notably relying on management’s expertise to carve-out businesses from industrial corporates”.
Pierre Luzeau, CEO of Novacap, says: “We are very happy to welcome AXA Private Equity as a majority shareholder of Novacap. The firm has demonstrated a strong knowledge of our businesses and a real interest in our development projects. I am convinced that AXA Private Equity is the right partner to bring us the required resources to grow organically and externally through acquisitions”.
Walid Sarkis, Managing Director at Bain Capital said: “We are privileged to have led the creation of Novacap in partnership with its management team and Rhodia. The company has successfully established itself as an independent chemical business. Over the past 8 years, it has strengthened its competitive positions and grown into new products. It provides today a solid platform for further development”.
BNP Paribas, HSBC and Société Générale Corporate & Investment Banking (SG CIB) acted as “Mandated Lead Arrangers and Bookrunners” to arrange and underwrite senior credit facilities for the acquisition.
The acquisition is subject to approval by the European antitrust authorities as well as other required governmental authorisations.
