Polynt-Reichhold agrees to repurchase Investindustrial’s shares in the company
Transaction will make Black Diamond Capital Management the company’s controlling shareholder, poises Polynt-Reichhold for continued growth.
Photo Credit: Polynt-Reichhold Group.
Black Diamond Capital Management LLC (Stamford, Conn., U.S.) has announced a transaction involving one of its portfolio companies, Speciality Chemicals International Ltd. (London, U.K.), a holding company of Polynt-Reichhold Group (Scanzorosciate, Italy) that develops coatings, composite resins, thermoset compounds and gelcoats. Polynt-Reichhold, previously invested in by Black Diamond and Investindustrial, has agreed to repurchase Investindustrial’s shares in its company. Following the completion of the transaction, Black Diamond says it will become Polynt-Reichhold’s controlling shareholder.
Black Diamond and Investindustrial became partners in Polynt-Reichhold after the successful merger of Polynt and Reichhold in May 2017. In the years following the merger, it is said the combined company’s performance has substantially improved. The transaction, together with the refinancing of the existing debt, will be financed by approximately €1.3 billion (equivalent) of new senior secured and unsecured debt facilities expected to be issued by Polynt-Reichhold in the public debt capital markets. Affiliates of JP Morgan and certain funds managed by affiliates of Apollo Capital Management, L.P., have provided a commitment for the debt financing and funds managed by Black Diamond have provided an equity commitment.
“We are pleased with what management has been able to achieve with Polynt-Reichhold thus far, and are looking forward to supporting them for the next phase of growth,” says Steve Deckoff, Black Diamond’s managing principal.
The transaction is expected to close within six months from the date hereof, subject to receiving all necessary regulatory approvals.
