PVC Europe Group, a subsidiary of Investindustrial Growth — a leading European group of independently managed investment, holding and advisory companies — will sell the compounding business of France-based Benvic Group to International Chemical Investors Group (ICIG) of Frankfurt, Germany.
The sale is subject to consulttion with Benvic's union in France and European Union antitrust approval, but it is expected by close by the end of 2022.
Investindustrial acquired the company in 2018 from Los Angeles-based private equity group OpenGate Capital. It is expected to retain Benvic's medical business in Italy.
Founded in 1963 as a subsidiary of Solvay, the Benvic Group, with a reported 500 million euros in sales and 630 full- time employees, is one of the leading suppliers of thermoplastic solutions in Europe. Since being acquired by Investindustrial, Benvic Compounds has been transformed into a global leader in thermoplastic solutions through a program of eight add-on acquisitions across Europe and the United States.
Today, the company is one of Europe’s leading PVC compounders in terms of volume. In addition, Benvic is active in the development and production of thermoplastic solutions based on engineering polymers and polylactic acid compounds and is a leading supplier of various specialty compounding applications in the U.S.
In addition to the successful international build-up strategy, Benvic Compounds has pursued a number of value creation initiatives, building on the company’s core strengths, including end-market and product diversification, operational improvements and the strengthening of the management team.
“Benvic has been transformed under Investindustrial’s ownership over the last four years. Together we have taken the company to the next stage of its development, strengthening our global position in the compounding industry and improving our product offering to our customers through ongoing R&D and expansion into solutions for new applications,” said Benvic CEO Luc Mertens.
Benvic has also embraced Environmental Social and Governance (ESG) issues that are increasingly important for employees, customers, suppliers and lenders. Among other things, the company completed an ESG-linked refinancing, which in 2020 was one of the first of its kind in the European market.
This refinancing has enabled Benvic to continue its organic and acquisition-based growth strategy, a process that has enabled the company’s transition from a niche compounder into a platform for growth.
“Benvic has thrived under our ownership as a result of a strong industrially-driven plan, with a clear investment rationale that has been executed with care and precision by our teams and management. We are confident that the company remains well positioned to continue its strong growth trajectory under its new owners.”
Benvic Group will become ICIG’s second polymers platform, next to Chlorovinyls/Vynova, said Achim Riemann, managing director of ICIG.
“Benvic is well-known for its innovation capabilities as well as its skilled and dedicated employees. We look forward to welcoming the Benvic employees to ICIG. Together we will realize tremendous opportunities to further grow the business and strengthen Benvic’s promising initiatives to also become one of the leaders in sustainable solutions for the plastics industry.”