CVC Capital Partners is set to exit its French construction chemicals business Parex in a sale to Swiss rival Sika.
The European investor bought Parex from French private equity firm Wendel back in 2014, using its CVC Fund V.
The manufacturer provides mortar products and services such as facade mortars, tile adhesives, waterproofing, and technical mortars.
Parex reported sales of CHF1.2bn for 2018 and expects to record an EBITDA of around CHF195m. The company operates in 23 countries and manages 74 plants around the world.
Sika is set to buy the company as it seeks to strengthen its position in construction chemicals and industrial adhesives markets. The deal is expected to close in the second or third quarter of this year.
Parex CEO Eric Bergé said, “Under CVC Fund V’s ownership, the Parex team has delivered a very strong performance, growing sales from €750m in 2013 to over €1bn.
“Over this five-year period, Parex entered 3 new countries and opened 16 new plants, added 11 bolt-on acquisitions, and built a new international R&D center.
“Sika represents a great platform to continue to deliver on Parex’s ambitious growth plan and the combination creates new exciting opportunities in terms of offering new solutions to our customers and continuing our geographic expansion.”
CVC raised €16bn-worth of capital commitments for its latest European flagship fund in 2017. The firm manages $69bn of assets through its network of 24 offices worldwide.
Last week CVC entered exclusive talks with Evolem to buy a majority stake in French insurance business, APRIL.
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