Private equity firm KPS Capital Partners LP is making a big move into the composites market by spending more than $2 billion on a pair of acquisitions.
New York-based KPS will spend most of that amount — almost $1.8 billion — to acquire the Ineos Composites business from Ineos Enterprises. The composites unit has annual sales of more than $840 million and employs about 900 at 17 manufacturing sites and three technology centers worldwide.
In a news release, KPS managing partner Raquel Vargas Palmer said Ineos Composites' "leading market position and long-tenured customer base is a testament to its differentiated product quality, reliability and strong technical service capabilities."
Officials with London-based Ineos Enterprises said in the release that they believe the KPS deal "to be an attractive offer that aligns with the potential future opportunities for the business." Chairman Ashley Reed added that the unit "has achieved significant improvements in safety and financial performance" in the five years it was owned by Ineos.
The transaction is subject to regulatory approvals and consultation processes. In particular, for the French business, both parties have entered into exclusive negotiations. The proposed deal is expected to be completed in the first half of 2025.
Ineos Composites makes unsaturated polyester resins, vinyl ester resins and gelcoats used in plastic composites. Attributes of the unit's products include corrosion resistance, fire retardance, ultraviolet resistance, water and chemical resistance, thermal and electrical insulation, impact and scratch resistance and high strength-to-weight ratios.
In another composites deal, KPS is buying the Engineered Materials business of Crane Co. for $227 million. That unit makes fiberglass-reinforced plastic composites for construction, transportation and other markets.
In a news release, Max Mithcell, CEO, president and chairman of Stamford, Conn.-based Crane, said the sale "reflects yet another important step forward following the numerous actions we have taken over the last few years to simplify our portfolio."
KPS manages investment funds with around $21.4 billion of assets under management. Officials said the firm "has a strong track record" of investments in manufacturing and industrial companies in industries including basic materials, branded consumer, health care and luxury products, auto parts and capital equipment.
KPS portfolio companies have combined annual sales of about $23.7 billion. Those companies operate 251 manufacturing facilities in 30 countries and employ about 65,000. The current KPS portfolio includes Briggs & Stratton, a global supplier of power tool products based in Milwaukee.
In June, KPS announced a deal to sell Eviosys, a European metal food can, ends and closures maker, to packaging firm Sonoco Products for $3.9 billion. Sonoco is a major plastics thermoformer based in Hartville, S.C.