11 May 2018

Silverfleet Capital invests in leading European resin manufacturer Prefere Resins

Silverfleet Capital, the Pan-European private equity firm that specialises in buy-to-build, has entered into a binding contract to acquire a majority stake in Prefere Resins Holding GmbH (“Prefere” or the “Company”). Headquartered in Erkner, situated on the outskirts of Berlin, Germany, the Company is a European market leader in the development, production and sale of phenolic and amino resins which are used as a binding agent across the construction, insulation and industrial sectors. Completion is subject to regulatory approval and the terms of the transaction were not disclosed.

Built through the acquisition of plants owned by Neste and Perstorp in 2000, Prefere operates seven production facilities across six European countries (Germany, France, UK, Finland, Poland and Romania), has three R&D sites (Germany, Austria and Finland) and four regional sales offices (Germany, UK, Finland and Austria). Producing over 320 kilotonnes in volume and employing over 320 people, the Company has a diversified product portfolio of more than 900 individual formulations, serving over 300 customers including several large, blue chip multi-national corporations, which are global suppliers of engineered wood products and insulation materials. Applications for Prefere’s products include:

  • Construction: plywood, laminated veneer lumber, impregnated paper / decorative surfaces
  • Insulation: glass wool and stone wool
  • Industrial: abrasives, brake pads / discs, refractory products and fuel, oil and air filters

Following the acquisition, Silverfleet will pursue its buy-to-build investment strategy, enabling Prefere to continue its growth trajectory through: (i) enhancing the Company’s research and development capabilities; (ii) new product launches; and (iii) expanding Prefere’s geographical presence and customer base. Additionally, Silverfleet will draw upon its extensive experience in the chemical sector having made successful investments in Coventya (speciality chemicals manufacturer and supplier), Kalle (synthetic sausage casing manufacturer), Aesica (pharmaceutical contract manufacturer) and Finnish Chemicals (leading global producer of pulp chemicals).

The acquisition of Prefere represents Silverfleet Capital’s eighth investment from its current fund and the third in Germany following recent investments in Pumpenfabrik Wangen (specialist industrial pump manufacturer) and 7days (market leader in the supply of medical workwear).

“Prefere Resins is a European market leader in the production of phenolic and amino resins with a strong heritage. The Company operates in a growing market and serves industries that will continue to be characterised by strong demand in the future. This is a typical Silverfleet investment, where we will be supporting a market leading specialised business achieve its next phase of international growth. We look forward to working closely with the Company’s management team and employees in continuing to develop the business,” comments Klaus Maurer, Partner at Silverfleet’s Munich office who led the transaction.

Arno Knebelkamp, CEO of Prefere Resins, adds: “We are delighted to have found in Silverfleet a pan-European partner for our next growth phase. Silverfleet has made a number of successful investments across the European chemical sector and has an impressive track record in assisting companies achieve their international growth potential. We’re very keen to start executing our development plans together.”

The Silverfleet team that worked on the transaction included Klaus Maurer, Jennifer Regehr, Benjamin Hubner, Jan Kux and Guntram Kieferle, who are based in Silverfleet Capital’s Munich office.

Silverfleet was advised by goetzpartners, ChemAdvice (both Commercial), Investec (M&A), PwC (Financial & Tax), H&Z (Operational), Ramboll (Environmental), Latham & Watkins (Legal, Corporate), Shearman & Sterling (Legal, Financial), and Lincoln (Debt).

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