02 February 2017
Coventya completes first two add-on acquisitions since Silverfleet invested in May 2016
Silverfleet Capital, the European private equity firm with a buy-to-build strategy, is pleased to announce that Fund II portfolio company Coventya has made two add-on acquisitions, both in Turkey.
Coventya, headquartered in Villeneuve-la-Garenne near Paris, is a global, leading specialty chemicals group focused on surface treatment to the automotive, construction, luxury and consumer goods, data storage, and oil & gas industries.
In the larger of the two deals Coventya has acquired an 80.6% interest in Borsa Istanbul-listed Politeknik Metal Sanayi ve Ticaret A.Ş. (“Politeknik”), a leading manufacturer of aluminium surface treatment (“AST”) chemicals and engineering services for the corresponding application equipment with revenues of over €9 million. Coventya will also launch a mandatory tender offer (“MTO”) for the remaining 19.4% of the company’s shares in compliance with the principles and procedure of the Capital Markets Board of Turkey. Politeknik, which has a world class manufacturing facility in Tuzla, Istanbul, also has an affiliated company in the USA, based in Atlanta, and currently exports 20% of its chemical sales. Coventya plans to use its worldwide distribution network to help further penetrate the AST chemicals market in the USA and Europe. The lightweight properties of aluminium are driving growth in its usage in the automotive, construction and several other sectors.
The company’s second transaction is the acquisition of Telbis. With revenues of c.€3 million, Telbis is Coventya’s exclusive distributor of chemicals to the general metal finishing (“GMF”) market in Turkey. Telbis, which will be renamed Coventya Kimya, will be able to draw on the resources of the group to gain market share in the region.
The aggregate deal size will be c.€18 million, with Silverfleet funds investing slightly over €4 million of additional equity depending on the outcome of the MTO process which will commence shortly.
Thomas Costa, CEO, and Torsten Becker, CFO of Coventya commented: “We are delighted that these two acquisitions will both reinforce our expertise in aluminium surface treatment and further develop our international footprint in GMF by creating a direct presence in Turkey”.
Jean Châtillon, Principal at Silverfleet Capital said: “In a still fragmented sector, these two transactions are Coventya’s next steps in a Buy & Build plan to further develop Coventya’s range of technologies and its international presence.”
The advisers to Coventya were: European Growth Management (M&A), Latham & Watkins, Paksoy, Gide, Advancy, KPMG and PricewaterhouseCoopers.