Radici Group, an integrated player in nylon resins, is selling off major pieces of business to tighten its focus on textile production.
The Bergamo, Italy-based company has a definitive agreement to divest both its Specialty Chemicals and High Performance Polymers businesses to Lone Star Funds, a private investment firm based in Dallas.
Radici has built an integrated business that produces chemicals then used in the production of plastics, including nylons, also known as polyamides, two segments now going to Lone Star.
The company's Advanced Textiles Solutions business makes synthetic fibers, including polyamides, which are then sold to other companies for products such as apparel, flooring, curtains and upholstery. This segment remains with the family-owned company.
"In a constantly evolving market environment, Lone Star Funds' experience in the chemical sector, combined with its strategic resources and global expertise/reach, will be key factors in supporting the further business growth, while ensuring continued excellence in serving customers," said in a statement attributed to President Angelo Radici and Vice President Maurizio Radici.
"The Radici family will continue to drive the Advanced Textile Solutions Business Area focusing on innovation and sustainability," the statement said.
For Lone Star, the deal allows the investment firm to build on the company's existing portfolio.
"This carve-out acquisition is highly complementary to Lone Star's portfolio of specialty chemicals and manufacturing businesses and aligns well with our strategy of investing in industry leaders with strong growth potential," Lone Star CEO Donald Quintin said in a statement.
He also spoke about improving the company's competitive position and operations as well as creating new growth opportunities.
Terms were not disclosed, and the deal is expected to be completed during the second half of this year.
Lone Star Funds has grown into a $95 billion investment firm since its founding in 1995. The firm handles money for limited partners that include institutional investors such as pension funds and sovereign wealth funds as well as foundations and endowments.
Lone Star's holdings include AOC Holdings, a maker of unsaturated polyester resins, vinyl ester and other materials, which it purchased in 2021.
Radici, with 3,000 employees, dates back to 1941 and posted sales of about $1.1 billion in 2023 thanks to operations in Europe, North America, South America and Asia.