#United States #New York #Acquisition #KPS Capital Partners #INEOS Composites

KPS Capital Partners to Acquire INEOS Composites

In a significant move within the manufacturing sector, KPS Capital Partners, LP has announced a definitive agreement to acquire INEOS Composites from INEOS Enterprises Holdings II Ltd for an estimated sum of €1.7 billion. This strategic acquisition is projected to be finalized in the first half of 2025, pending necessary regulatory approvals.

INEOS Composites, a premier global manufacturer of specialty resins, has established itself as a market leader in the production of unsaturated polyester resins, vinyl ester resins, and gelcoats. These products are integral to various industries, including building materials, transportation, recreation, and renewable energy initiatives like wind power. With a wide product range, INEOS Composites enables customers to tailor their offerings with features such as corrosion resistance, fire retardance, and thermal insulation, thus enhancing the performance of plastic composites.

Headquartered in Dublin, Ohio, and Barcelona, Spain, INEOS Composites operates 17 manufacturing facilities along with three technology centers across North America, Europe, Asia, and the Middle East, employing roughly 900 individuals.

Perspectives on the Acquisition

Raquel Vargas Palmer, Managing Partner at KPS, expressed enthusiasm about the acquisition, emphasizing INEOS Composites' established market presence and customer loyalty. She noted that KPS will leverage its extensive experience in investing within process industries to enhance the operational capabilities and profitability of INEOS Composites. The plan entails fostering an entrepreneurial culture focused on innovative practices and improving customer experience.

In similar sentiments, Andrew Miller, Chief Executive Officer of INEOS Composites, stated that the new partnership with KPS offers exciting prospects for the company’s future as an independent entity. He highlighted KPS' reputation for nurturing industrial businesses and its focus on manufacturing excellence through strategic capital investments and R&D efforts.

Ashley Reed, Chairman of INEOS Enterprises, acknowledged the significant progress made in safety and financial performance during INEOS Composites' five years under INEOS Enterprises. He underscored the solidification of the company's market position through highly improved product quality and operational consistency.

Financial Backing and Legal Counsel

The acquisition is backed by committed debt financing from reputable institutions including Goldman Sachs Bank USA, Barclays, Citi, and others, ensuring a solid financial foundation for the completion of the deal. Legal counsel for KPS was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Piper Sandler acted as financial advisor for KPS, and Slaughter and May represented INEOS Enterprises.

About INEOS Composites and KPS Capital Partners

INEOS Composites has been recognized for its reliability and technical prowess in the resins market. Its diverse product range is pivotal in aiding industries to enhance their material properties for various applications.

KPS Capital Partners, with over three decades of dedicated experience, manages a portfolio of investment funds, focusing primarily on manufacturing and industrial sectors. As of September 30, 2024, the firm manages approximately $21.4 billion in assets across various industries, providing a robust platform for driving strategic growth initiatives.

The acquisition of INEOS Composites signifies KPS Capital Partners' commitment to expanding their footprint in the composites market, emphasizing their strategy of creating value through operational improvements and innovation-driven practices.