Munich, London, Paris — Prefere Resins, one of Europe’s leading phenolic and amino resin producers headquartered in Erkner, Brandenburg, near Berlin, is taking an important step in expanding its global market position: The portfolio company from the second fund of the European investment company Silverfleet Capital has entered into an agreement with the British INEOS Enterprises signed a purchase agreement for the Melamines and Paraform businesses. The transaction is still subject to regulatory approval; closing is expected later this year. The parties have agreed not to disclose the purchase price.
Prefere Resins specializes in the development, manufacture and distribution of phenolic and amino resins used as a base for composite materials in the construction, insulation and industrial sectors. The company has production facilities in Germany, Finland, the UK, France, Poland and Romania, three research and development sites (Germany, Austria and Finland) and four regional sales offices (Germany, the UK, Finland and Austria). The company employs more than 320 people and its annual production volume is about 350,000 tons.
With the acquisition of the INEOS Melamines & Paraform business units, Prefere Resins expands its global reach with additional production facilities in the US and Germany, as well as a contract manufacturing facility in Indonesia. INEOS Paraform is considered the second-largest supplier of the basic chemical paraformaldehyde in Europe. Around 120 employees work at the Mainz site, where formaldehyde and formaldehyde derivatives have been produced for more than 100 years. At INEOS Melamines, one of the world’s leading suppliers of melamine resins with around 150 employees, industrial customers in the coatings, paper, textiles, tires, rubber and decorative laminates sectors are served from Frankfurt, Springfield (USA) and via contract manufacturing in Surabaya (Indonesia).
“The acquisition of the two business units of INEOS Enterprises, which are excellently positioned in the market, marks a milestone in our growth strategy for Prefere Resins. With the additional expertise in the melamine resins, formaldehyde and formaldehyde derivatives segments, we are getting closer to our goal of positioning ourselves as a global resins producer,” says Arno Knebelkamp, CEO of Prefere Resins Holding GmbH. Jennifer Regehr, who was responsible for the transaction in Silverfleet Capital’s Munich office, adds: “Our investments aim to help market leaders in niches to achieve new growth. We are pleased that Prefere Resins has already succeeded in this within one year of our investment and that the next development step could be initiated.”
At Silverfleet Capital, Guntram Kieferle from the Munich office is involved in the transaction in addition to Jennifer Regehr.
About Prefere Resins
Prefere Resins is one of the leading phenolic and amino resin manufacturers in Europe. Seven production sites in six European countries are controlled from the company’s headquarters in Erkner near Berlin. Thanks to their safety-relevant properties combined with an attractive price-performance ratio, phenolic resins are among the most widely used thermosets and can be used in a wide variety of areas, which include construction, insulation (insulating materials) and industry (automotive and mechanical engineering). With more than 320 employees, the company produces around 350,000 metric tons of phenolic and amino resins and suitable additives each year, generating annual sales of around 250 million euros. www.prefereresins.com
About Silverfleet Capital
Silverfleet Capital has been active as a private equity investor in the European mid-market for more than 30 years. The 30-strong investment team works from Munich, London, Paris, Stockholm and Amsterdam.
Eight investments have already been made from the second independent fund closed in 2015 with a volume of 870 million euros: The Masai Clothing Company, a women’s fashion wholesaler and retailer headquartered in Denmark; Coventya, a French developer of specialty chemicals; Sigma Components, a U.K. manufacturer of precision components for civil aviation; Lifetime Training, a U.K. provider of training programs; Pumpenfabrik Wangen, a manufacturer of specialty pumps based in Germany; Riviera Travel, a British operator of escorted group tours and cruises; 7days, a German supplier of medical workwear; and Prefere Resins, a leading phenolic and amino resin manufacturer in Europe.
Silverfleet achieves value growth by investing in companies in its core sectors that benefit from specific, long-term trends. Silverfleet supports these companies in their future growth strategies. As part of these strategies, investments are made in organic growth drivers, internationalization, strategic acquisitions or operational improvement processes. Since 2004, Silverfleet Capital has invested €1.9 billion in 28 companies.