Advent seals €600m Mondo Minerals exit to Elementis after seven-year hold

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Advent International has sealed the $600m sale of talc products business Mondo Minerals to trade buyer Elementis after seven years in its portfolio.

Amsterdam-headquartered Mondo  produces and supplies talc products for use in end markets including plastics, coatings and paints, technical ceramics, pharmaceuticals and paper.

The deal price represents 13.1x the company’s 2018 EBITDA to date. Last year Mondo generated revenues of €122m and EBITDA of €31m, with an EBITDA margin of 25 per cent.

Advent managing director Michael Ogrinz said, “The significant transformation of Mondo under Advent’s ownership is a case study for our resource-intensive and hands-on operational approach to investing.

“Together with Mondo’s talented management team we have positively transformed the business and put it on a trajectory to continue its rapid growth as part of the Elementis family.”

The transaction, which is subject to approval by the shareholders of Elementis, consultation with Mondo’s works council and receipt of the required anti-trust approvals, is expected to close in the second half of 2018.

Advent’s sale comes just a few days after it agreed a $3.25bn buyout of General Electric’s gas engine and power equipment business Distributed Power.

The unit has about 3,000 employees and recorded sales of more than $1.3bn last year.

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