When we initially invested in Prefere Resins the business developed, produced and sold phenolic and amino resins used as binding agents across the construction, insulation and industrial sectors.
At the time, Prefere, based on the outskirts of Berlin, had seven production facilities across six European countries (Germany, France, UK, Finland, Poland and Romania), as well as three research and development sites in Germany, Austria and Finland.
The applications for Prefere’s products included:
- plywood, laminated veneer lumber, impregnated paper or decorative surfaces used in the construction industry;
- insulation materials such as glass wool, stone wool and;
- industrial products such as abrasives, brake pads discs, and fuel, oil and air filters
We have backed a European market leader that has developed more than 900 formulations with diverse performance features that can be individually tailored based on customer requirements. Prefere’s R&D capabilities and proximity to its long-standing customers are key given the limited shelf life of its products.
We hope to pursue our buy-to-build investment strategy, enabling Prefere to continue its growth trajectory through further enhancing the company’s R&D capabilities; new product launches, and expanding Prefere’s geographical presence and customer base.
In April 2019, Prefere agreed to acquire INEOS’ Melamines & Paraform business, then part of the INEOS Enterprise’s portfolio. Prefere’s acquisition of INEOS Melamines & Paraform covered a total of three production sites located in the US and Germany as well as a tolling arrangement in Indonesia; significantly increasing the company’s global footprint. It also extended Prefere’s product range to include melamine resins and paraformaldehyde, and broadened the applications of its products to include coatings among others.
INEOS Melamines was a world leader in the supply of melamine resins into coatings, paper, textile, tyre, rubber and decorative laminates industries. At the time of the deal the business employed about 150 people at its sites in Springfield, USA, and in Frankfurt, Germany.
INEOS Paraform was Europe’s second largest producer of Paraformaldehyde and employed about 120 people at its Mainz, Germany facility at the time of the add-on acquisition. The business had been producing Formaldehyde and its downstream derivatives for more than 100 years and continued to innovate and develop its business.
>600 kilotons volume
up from ~300 at acquisition
up from ~320 at acquisition
10 production sites
up from 7 at acquisition