Industri Kapital has sold Sydsvenska Kemi, the holding company of the speciality chemicals group Perstorp AB to PAI Partners in a secondary buyout transaction. Financial details of the transaction are undisclosed. Industri Kapital is reported to have made a 1.5 times return on the transaction.
Perstorp is a manufacturer of speciality chemicals focused on additives for the coating industry. The Perstorp Group had annual sales of SEK6.5bn in 2004, and currently employs around 1,600 people. The group has manufacturing operations in eight countries in Europe, North America and Asia.
Industri Kapital took the company private from the Stockholm Stock Exchange in June 2001. During IK’s ownership, a number of non-core assets have been divested and Perstorp has made several strategic add-on acquisitions globally including the acquisition of Neste Oxo, Finland (2001) and the feed additive company Franklin Holding B.V. (2004). Perstorp has also entered into strategic joint venture agreements in South
Korea and Japan positioning it well in the rapidly growing Asian markets.
Since 2002 Perstorp’s speciality chemicals business has achieved consistent growth; sales have increased by more than 10% and EBITDA growth exceeded 17% leading to a top class EBITDA margin in 2004 of 19%.
PAI Partners’ acquisition of the business is subject to regulatory approvals and is expected to be completed before year-end 2005.