#USA #New York #Acquisition #KPS Capital Partners #INEOS Composites

KPS Capital Partners Expands Portfolio with INEOS Composites Acquisition

New York, December 3, 2024 — KPS Capital Partners, LP (referred to as KPS) has made headlines by announcing a major strategic move that will see it acquire INEOS Composites from INEOS Enterprises Holdings II Ltd for a projected €1.7 billion. This significant agreement will be facilitated through a newly established subsidiary and is set to conclude in the first half of 2025, pending regulatory approvals.

INEOS Composites is renowned for being a global leader in the production of unsaturated polyester resins, vinylester resins, and gelcoats, which are critical for manufacturing plastic composites used across various industries such as construction materials, transportation, and renewable energy. With a robust array of products, the company specializes in enabling customers to enhance specific attributes such as corrosion resistance, flame retardance, UV stability, and impact resistance.

Headquartered in Dublin, Ohio, and Barcelona, Spain, INEOS Composites employs around 900 individuals across 17 manufacturing facilities and three technology centers worldwide - located in North and South America, Europe, Asia, and the Middle East.

Raquel Vargas Palmer, the managing partner at KPS, expressed enthusiasm about acquiring INEOS Composites, emphasizing the company's strong market position and extensive customer base which reflects its exceptional product quality, reliability, and technical service delivery. Vargas stated, "We are excited about the acquisition of INEOS Composites, a global leader in specialty composite resins. We aim to leverage KPS’s extensive experience in investing in the process industry to enhance profitability while fostering a culture rooted in innovation and excellent customer experience."

The CEO of INEOS Composites, Andrew Miller, shared his optimism regarding their new future under KPS's ownership. Miller highlighted KPS's track record of successfully establishing and growing industrial entities, noting that their commitment to production, capital investment, research, and development will empower INEOS Composites to deliver industry-leading products enhanced by exceptional service levels.

Ashley Reed, chairman of INEOS Enterprises, also lauded the performance improvements and safety enhancements that INEOS Composites made during its five-year tenure within the company, laying the groundwork for substantial future growth.

The legal advisory services for KPS were provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Piper Sandler served as the financial advisor. Meanwhile, Slaughter and May represented INEOS Enterprises in this transaction. The financing necessary to facilitate the acquisition is supported by Goldman Sachs Bank USA, Barclays, Citi, Intesa Sanpaolo - IMI CIB Division, and MUFG Bank.

About INEOS Composites

INEOS Composites stands out as a leading manufacturer of specialty resins and gelcoats, catering to diverse applications in vast global markets. Their facilities and extensive portfolio allow customers to manipulate product functionalities optimally. For more details about INEOS Composites, visit www.ineoscomposites.com.

About KPS Capital Partners, LP

KPS manages the KPS Special Situations Funds, a collection of investment funds totaling approximately $21.4 billion in assets under management (as of September 30, 2024). The partnerships within KPS have built a reputation over three decades for generating significant capital growth through strategic investments in manufacturing and industrial enterprises across various sectors.

KPS distinguishes itself by collaborating constructively with management teams to enhance operational effectiveness and market competitiveness, producing investment returns through structural improvements rather than relying solely on financial leverage. Currently, KPS's portfolio companies generate annual revenues of about $23.7 billion, maintain 251 manufacturing sites across 30 countries, and employ around 65,000 individuals globally (as of September 30, 2024, pro forma for recent acquisitions). Learn more at www.kpsfund.com.

About INEOS Enterprises

INEOS Enterprises encompasses an array of companies dedicated to manufacturing chemical products primarily in Northern Europe, the U.S., and Canada, generating an annual revenue of €2.7 billion. The company focuses on addressing evolving customer needs and pursuing rapid growth through new product development and acquisitions. INEOS Enterprises employs about 3,100 staff with operations in several countries including the U.K., Germany, Sweden, Switzerland, Canada, and the U.S. For additional information, explore www.ineosenterprises.com.