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

KPS Capital Partners Expands Portfolio with INEOS Composites Acquisition

In a significant move aimed at bolstering its position in the composite materials market, KPS Capital Partners, LP has announced a definitive agreement to acquire INEOS Composites from INEOS Enterprises Holdings II Ltd. The acquisition, projected to finalize in the first half of 2025, involves a transaction valued at approximately €1.7 billion, pending regulatory approvals and ongoing consultation processes, particularly regarding operations in France.

INEOS Composites stands as a global leader in the production of unsaturated polyester resins, vinyl ester resins, and gelcoats, which are integral to a wide array of applications across major end markets, including construction materials, transportation, leisure, and renewable energy sectors, like wind power. With its products, INEOS Composites provides solutions that meet diverse requirements such as corrosion resistance, fire retardancy, UV stability, and high strength-to-weight ratios, among others.

Based in Dublin, Ohio, and with additional operations in Barcelona, Spain, INEOS Composites employs approximately 900 individuals and operates 17 production sites across North America, South America, Europe, Asia, and the Middle East. This extensive footprint underscores its commitment to delivering high-quality products and services.

Raquel Vargas Palmer, a managing partner at KPS, expressed enthusiasm about the acquisition, stating, "Acquiring INEOS Composites represents a crucial addition to our portfolio. The company's leadership in the composites market, coupled with its long-standing customer relationships, attests to the exceptional quality of its products and robust technical capabilities. We are poised to leverage KPS's extensive manufacturing expertise and global network to drive profitability and foster a culture of innovation and continuous improvement. We look forward to collaborating with INEOS Composites' CEO, Andrew Miller, to unlock further value opportunities for the company."

Andrew Miller also shared his excitement about the transition, emphasizing the strategic alignment with KPS. "We are thrilled about the prospect of becoming an independent entity under KPS. Their proven track record in building and scaling world-class industrial businesses, coupled with a strong commitment to manufacturing excellence and capital investment, positions us to enhance our product offerings and service quality," he said.

Ashley Reed, president of INEOS Enterprises, commented on the company's journey within the INEOS group, highlighting the significant safety and financial performance improvements made during the past five years. He noted, "INEOS Composites has established a solid market position ahead of this acquisition, driven by enhanced product quality and operational capabilities, laying an impressive foundation for future growth."

Legal counsel for KPS was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Piper Sandler acted as the financial advisor. Slaughter and May provided legal support to INEOS Enterprises. Financial backing for the transaction comes from a consortium that includes Goldman Sachs Bank USA, Barclays, Citi, Intesa Sanpaolo, and MUFG Bank.

About INEOS Composites

INEOS Composites is recognized as a leading global manufacturer of polyester and vinyl ester resins and gelcoats utilized in producing composite plastics for diverse applications. Their extensive product range empowers customers to optimize various features such as chemical resistance and lightweight strength. For more information, visit INEOS Composites.

About KPS Capital Partners

KPS Capital Partners manages the KPS Special Situations Funds, with assets totaling approximately $21.4 billion as of September 30, 2024. KPS focuses on driving value through strategic investments predominantly in manufacturing and industrial sectors. The portfolio companies under KPS currently generate around $23.7 billion in annual revenue and operate numerous production facilities worldwide. Explore more at KPS Fund.

About INEOS Enterprises

INEOS Enterprises operates a portfolio of chemical manufacturing businesses across Northern Europe, the USA, and Canada, generating approximately €2.7 billion globally. The company is committed to aligning with customer needs and fostering growth through new product innovations and acquisitions. For further details, visit INEOS Enterprises.