Advent International sells global coating resins leader allnex to PTTGC International (Netherlands) B.V.
- Under Advent’s ownership, allnex was transformed into the global market leader for industrial coating resins
- PTTGC will further strengthen allnex’s market access in the APAC region and support investments in innovative and green technologies
- Advent Managing Partner Ronald Ayles: “With PTTGC, we have found the ideal partner for the next phase of allnex’s growth”
Bangkok/Frankfurt am Main, July 12, 2021 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, has signed an agreement to sell allnex Holding GmbH (“allnex”) to Netherlands-based PTTGC International (Netherlands) B.V., a wholly owned subsidiary of Bangkok-based PTT Global Chemical Public Company Limited (“PTTGC”). The transaction values allnex at an Enterprise Value of approximately €4bn which equates to about 12.2x LTM March 2021 EBITDA.
allnex is the leading global producer of industrial coating resins, offering a broad range of coating polymers and additives, including powder resins, industrial waterborne resins, energy curable resins, crosslinking resins and additives for use on all types of substrates, such as wood, metal and plastic. With about €2bn in revenue and around 4,000 employees worldwide, allnex has leading positions in all key industrial coating segments, including a.o. industrial metal, automotive, and packaging. allnex manages a global production network of 33 state-of-the-art manufacturing sites and 23 research and technology facilities to support customers across the world. The company has been pioneering sustainable innovations for the coatings industry for over 70 years and focuses on environmentally friendly technologies, such as waterborne industrial resins, powder resins, energy curable resins and high-solids technologies.
With over 30 investments, Advent is one of the most experienced investors in the global chemical industry. The firm acquired Cytec Industries’ coating resins business in 2013 through a carve-out. Over the past eight years, Advent established the business as an independent company named allnex and strengthened its market position through several acquisitions and organic investments. By acquiring resins manufacturer Nuplex in 2016, allnex strengthened its access to emerging markets, creating a truly global industry leader. Under Advent’s ownership, allnex invested significantly into growth and more than doubled its numbers of employees, production sites, R&D centres, and customers. Overall, Advent’s investment in growth totalled more than €1.5bn. Today, the company has one of the broadest technology portfolios in the market and is the leading global producer of industrial coating resins.
Ronald Ayles, Managing Partner and Head of Advent’s global Chemicals and Materials practice, said: “Over the past eight years, we have supported allnex’s management team in transforming the company from a corporate carve-out into the number one global producer of industrial coating resins. Our significant investment in growth lead to an impressive track record – especially in green technologies. With PTTGC, we have now found the ideal partner to support allnex’s next phase of growth and to continue its success story.”
Miguel Mantas, CEO of allnex, commented: “We are proud of the success we have in building allnex into a global player and are very grateful to Advent for its support and partnership over the past years. To build on our leading market position, we will continue to invest in innovative technologies and look to expand our presence in APAC. With its resources, industrial network and expertise in Asia, PTTGC will help us take this next step in our company development.”
As a subsidiary of PTT Group, the premier energy company in Thailand and a Fortune Global 500 company, PTTGC’s portfolio includes the manufacturing and distribution of upstream, intermediate, and downstream petrochemical products for industries such as packaging, textiles and automotive, and was rated number one on the Dow Jones Sustainability Index (DJSI) World Index in the chemical sector for the last two consecutive years.
PTTGC is committed to strengthening its leading position in the chemicals business by combining environmentally friendly innovations with advanced technologies. The company is a strategic long-term investor and will further improve allnex’ market access to the Asia Pacific region which represents the largest growth potential in the coating resins industry. PTTGC will support allnex in further expanding its presence in emerging markets through further investments. Furthermore, PTTGC will provide allnex with an improved access to raw materials.
“In line with our vision to become a leading global chemical company while improving people’s quality of life, as well as our core strategies to drive new sustainable growth opportunities, we are pleased to announce PTTGC International (Netherlands) B.V., a PTTGC wholly owned subsidiary, invests in allnex, a business with outstanding innovation, history and promise, to establish a stronger position internationally,” said Dr. Kongkrapan Intarajang, CEO of PTTGC.
“As the global market leader in industrial coating resins, with its broad portfolio, stable profit, and leading green technology, allnex is ideally positioned to benefit from three megatrends shaping the industry: increasing demand for high performance coating resins, a continued shift of growth to emerging markets, and a trend towards green coatings solutions. We look forward to working with the team at allnex to leverage this growth potential.”
The sale of allnex to PTTGC International (Netherlands) B.V. is expected to close in Q4 2021, subject to regulatory approvals.
About Advent International
Founded in 1984, Advent International Corporation is one of the largest and most experienced global private equity investors. The firm has invested in over 375 private equity transactions in 42 countries, and as of March 31, 2021, the firm had €64 billion in assets under management. With 14 offices in 11 countries, Advent has established a globally integrated team of over 240 private equity investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; chemicals and industrial; retail, consumer and leisure; and technology.
Advent has invested in over 30 companies in the chemicals industry over recent years. Examples include Röhm, one of the global market leaders in methacrylate chemicals, allnex, a global leader in resins for the paints and coatings industry, and Oxea, a leading supplier of oxo alcohols and oxo derivatives. In addition, Advent has invested in companies including VIAKEM, a leading manufacturer of fine chemicals, and GTM, a transnational distributor of chemical raw materials in Latin America.
After 35 years dedicated to international investing, Advent International Corporation remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
allnex is the leading global producer of industrial coating resins and additives for architectural, industrial, protective, automotive and special purpose coatings and inks. allnex is recognized as a specialty chemicals pioneer and offers an extensive range of products including innovative liquid resins and additives, radiation cured and powder coating resins and additives, and cross linkers for use on wood, metal, plastic and other surfaces. Today, allnex has a strong global presence with around 4,000 employees worldwide, 33 manufacturing sites, and 23 research and technology support facilities. allnex has achieved Gold rating by rating platform EcoVadis for its sustainability efforts and is among the top 6% of chemical companies worldwide.
About PTT Global Chemical Public Company Limited
PTT Global Chemical Public Company Limited, or PTTGC, was registered as a public company limited on October 19, 2011, to serve as PTT Group’s chemical flagship operation. PTTGC’s heritage in the industry originated from the merger of several major companies including National Petrochemical Co., Ltd. in February 1984. Since its founding, PTTGC has dedicated itself to being a leader of the sector and has combined olefins and aromatics capacity of 12 million tons per year, together with a refining capacity of 280,000 barrels per day of crude oil and condensate. The company’s core businesses consist of the Group Performance Center – Refinery & Shared Facilities; Group Performance Center – Aromatics; Group Performance Center – Olefins; Polymers Business Unit; EO-Based Performance Business Unit; Green Chemicals Business Unit; Phenol Business Unit; and Performance Materials & Chemicals Unit. PTTGC is Thailand’s largest integrated petrochemical and refining business and a leading corporation in the Asia-Pacific region, both in size and product variety.
Finsbury Glover Hering
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PTT GLOBAL CHEMICAL PUBLIC COMPANY
PTT Global Chemical Public Company
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