Advent International sells Vinnolit to Westlake Chemical Corporation
Frankfurt May 28, 2014 – Advent International, one of the largest and most experienced firms dedicated solely to private equity, today announced that it has signed an agreement to sell Vinnolit Holdings GmbH, a leading manufacturer of specialty PVC to Westlake Chemical Corporation for EUR 490 million. Westlake is an international manufacturer and supplier of petrochemicals, polymers and building products headquartered in Houston, Texas. The acquisition is subject to regulatory reviews.
Founded in 1993 and acquired by funds advised by Advent in 2000, Vinnolit has become a global leader in the specialty PVC market. Advent has supported the management in its successful transformation of the company into one of the foremost specialty PVC manufacturers in the world. Vinnolit’s focus on specialty PVC has seen the business diversify considerably both in terms of geography and end markets.
In addition to supporting the company’s organic growth, Advent was instrumental to Vinnolit completing a series of acquisitions. These include a deal to acquire the INEOS Paste PVC business, which significantly increased Vinnolit’s production capacity, thus reinforcing its position in the European PVC industry.
Under Advent’s ownership, Vinnolit was also one of the first to complete the conversion of its chlor-alkali-electrolysis plants to an environmentally friendly and energy saving membrane technology, thereby significantly increasing energy efficiency while reducing CO2 emissions. The company has also invested approximately EUR 1 billion in the modernization and expansion of its production footprint in Europe as well as in R&D and innovation.
With 1,400 employees, Vinnolit now operates six state-of-the-art production platforms and in 2013 generated sales of EUR 917 million. Today the company is strategically well positioned in Europe and continues to deliver strong financial performance.
“The acquisition of Vinnolit is an excellent strategic fit for Westlake. It will allow us to expand our chlorvinyl business globally and adds important specialty PVC products and technology to our existing portfolio,” says Albert Chao, Westlake’s President and CEO. “Vinnolit is an impressive company with an outstanding reputation for meeting customer needs with superior technology, product quality, and operating excellence. We look forward to working with their talented team as they join the Westlake family of companies.”
“We have transformed Vinnolit into the leading specialty PVC manufacturer and remain dedicated to further growing the company’s business,” commented Dr Josef Ertl, Managing Director of Vinnolit, on behalf of the management board. “We thank Advent for their support and strategic advice in developing Vinnolit and facilitating its successful transformation. We, as a management team look forward to beginning a new chapter in our company’s history and continuing our successful growth path together with Westlake.”
Ranjan Sen, General Manager at Advent International in Frankfurt, said: “We are delighted with the successful development of Vinnolit and thank its management team and the company’s employees for their cooperation and dedication throughout our investment.
Vinnolit is well positioned to successfully expand its leadership position in specialty PVC further under the new ownership of Westlake.”
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global investors dedicated solely to private equity. Since inception, the firm has invested in more than 290 buyout transactions in 39 countries and today has EUR 23.3 billion in funds under management. With offices on four continents, Advent has established a globally integrated team of over 170 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on growth and traditional buyout and strategic repositioning transactions across five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecoms. After 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for portfolio companies. For more information, visit www.adventinternational.com
With an annual capacity of 780,000 metric tonnes (1.7 billion lbs) Vinnolit is one of the leading PVC producers in Europe and the market and technical leader in specialty PVC globally. National and international activities of the company are managed from Ismaning, near Munich. Production sites are in Burghausen, Gendorf, Knapsack, Cologne, Schkopau and Hillhouse (UK). In 2013 Vinnolit generated sales of € 917 million. Vinnolit employs 1,400 people and produces and markets a wide range of PVC products covering all kinds of PVC applications for the building & construction sector, the automotive industry and the medical sector.For more information, visit www.vinnolit.com
About Westlake Chemical Corporation
Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company’s range of products includes ethylene, polyethylene, styrene, propylene, caustic,VCM, PVC resin and PVC building products, including pipe and specialty components, windows, and fence.For more information, visit the company’s Web site at www.westlake.com