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HgCapital acquires talc producer Mondo Minerals

European mid-market private equity firm HgCapital is buying Mondo Minerals, one of the world’s largest talc mining groups, from international white minerals group Omya.

European mid-market private equity firm HgCapital is buying Mondo Minerals, one of the world’s largest talc mining groups, from international white minerals group Omya. The transaction is subject to regulatory approval and is expected to close by the end of October.

Mondo, one of the world’s leading companies in talc mining and processing with revenues of some EUR130m in 2006, was created in 1998 from a merger of Norwegian, Finnish and Dutch talc mining companies. Mondo boasts annual production of some 650,000 tonnes and has total capacity of 760,000 tonnes per annum.

Talc is a base chemical with multiple applications in various industries, including paper, paint, plastics and ceramics. Mondo has secure reserves of raw materials for the next 40 years and supplies clients in more than 50 countries.

It mines talc from its own quarries in Finland and processes its product range at its plants in Sotkamo, Vuonos and Kaavi. It also has a processing plant in Amsterdam and a slurry makedown plant at Katwijk in the Netherlands.

In 2006, Mondo Minerals undertook the biggest investment project in its history, increasing finegrinding capacity at the Sotkamo plant to 330,000 tonnes per annum, making it the biggest single talc production facility in the world, while the Amsterdam plant was equipped with new jet-mills, bringing the capacity up to 100,000 tons.

‘Mondo is a well established, market-leading producer of talc in Europe,’ says HgCapital partner Martin Block. ‘Together with the present management team and staff, our intention is to support further growth and expansion of Mondo’s activities and to continue to develop products and services.’

Chief executive Wulf-Dietrich Keller says: ‘I view the new ownership as an opportunity for Mondo to realise its full potential by establishing itself as a truly global talc supplier. The management team plans to expand into high growth markets, based on its secure raw material resources and building on its strong market base in Europe. The change in ownership is expected to improve Mondo’s ability to pursue acquisitions in locations and markets not currently covered.’

HgCapital focuses on investments with an enterprise value in the range of EUR75m-EUR500m. Its business model combines sector specialisation with proactive support to portfolio companies, and applies management expertise across all phases of the investment process. HgCapital manages more than EUR2.7bn for institutional and private investors.

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