Company News

November 7, 2019

Covestro Closes Divestiture

Covestro sells PU business to private equity’s HIG

Simon Robinson
Urethanes Technology International
Plixxent
Schottek

Covestro AG has completed the sale of its European polyurethane systems house business to a U.S. private equity firm, and the new business now has a new CEO and a new name: Plixxent.

“We have been working for more than four months to carve out the businesses from Covestro,” explained its CEO Jorg Schottek at an airport hotel in Hamburg, Germany, with Urethanes Technology International.

Plixxent is not a name that trips off the tongue, but it is not designed to.

Schottek has spent three years working with venture capitalists H.I.G. Capital of Miami. Initially, he was helping them to understand the business before managing the purchase process. Once the deal completed on Nov. 4, he became CEO.

The high-double-digit-million-euro sale is part of Covestro’s portfolio optimization bid, and includes facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy.

System houses offer tailor-made polyurethane systems for customers.

Schottek has a core goal: To weld the individual entities into a business that can grow its sales from 250 million euros ($278.8 million) to 400 million euros ($446.2 million) in five years. His strategy is to use a single sales team cross-selling the expertise within the group and, possibly, some acquisition activity. But, he said, the focus will very much be on organic growth and filling in the gaps between the businesses.

Apart from the Spanish business, which was deliberately built as a systems house, the other parts of Plixxent were bought and run independently. The businesses that form the new company typically handle smaller volumes, and those businesses with customized products are relatively complex, Schottek said.

“This makes it challenging for a large company which is, naturally, more focused on larger volumes and standardized products,” he added.

This comes through in his description of the carve-out process.

“We have had to implement a completely new IT structure, computers, servers must be new from day one,” he said. “As a consequence of the carve-out, we also had to build a new back office structure at a group level.”

In total, the Plixxent business had contracts to supply customers with about 100 kilotonnes per year at the point of the spin-off. The move simplifies matters for Covestro, which is more focused on larger accounts.

“We are independent, and have a strong relationship with Covestro to source raw materials,” he said. “Customers should know that our raw material supply is 100 percent assured. We can source from other suppliers, too. This will help customers because we can offer them a broader portfolio of materials.”

Plixxent includes plants in Tarragona, Spain; Foxhol, Netherlands; Oldenburg, Germany; and Otterup, Denmark. There is also a sales office in Italy.

“We are planning to keep the individual approaches and use the core manufacturing, technology and service competences in each region,” Schottek said. “But we are looking to significantly strengthen our sales force across our regions. We will have four plants producing different materials with a sales force operating across markets and customers.”

He added that the sales team will look for opportunities and make sales across the whole portfolio. “We have experts on different segments,” he said. “There are a lot of opportunities to grow organically.”

This organic growth is likely to be achieved by asking what share of the polyurethane market a type of product has, and then striving to match the sales to that share in each country. This will be done by a larger, technically competent workforce which will sell the groups portfolio of products. Italy is the front runner for expansion.

“Looking at Europe in general, we will try to increase our sales organically, but we will also look at opportunities for acquisitions. For example, Italy is the second biggest market, and what we see is a lot of small, family-owned customers that need technical service. It is highly attractive for us,” he said.

H.I.G. has invested in nine other chemical-related groups in the past decade. Schottek said.

“We are excited to work with such an experienced investor,” he added. “Together we will target growth for Plixxent, organically and via M&A.”

H.I.G. has a buy-and-build approach toward its investments, which are mainly directed at the small and mid-sized business segment.

The company, according to Covestro, intends to further develop its pan-European presence and to build a strong and independent European group of polyurethane systems houses with a clear focus on mid-sized customers.

https://www.plasticsnews.com/news/covestro-sells-pu-business-private-equitys-hig

November 7, 2019

Polytek Obtains Grant for Expansion

Polytek wins Michigan’s help to invest in plant

Comstock Township, Michigan – Polytek Development, which makes polyurethane systems for casting and mould making, will invest around $2.1m in a new plant and facilities here.

The investment is being helped with a $112,000 grant from the local economic development corporation. In total 28 people could find jobs at the site.

Polytek is a platform company owned by Arsenal Capital Partners.It will use the new plant to consolidate work from several other locations.

Polytek has several locations from which it could chose to merge work into Michigan following a concerted programme of purchases. It bought:

  • BCC Products in October;
  • Stone Coat Countertops, an epoxy formulator in August; and,
  • ProMarine Supplies, also an epoxy formulator came into the fold earlier this year.

Before Arsenal bought Polytek, Polytek expanded when its previous owner bought Alumilite in 2018.

Mike Faupel is the vice president of Polytek’s Alumilite division. He said: ‘We would like to thank Michigan Economic Development Corporation and Southwest Michigan First for their time and support. We are eager to expand our team and develop community partners in Comstock township.’

https://www.utech-polyurethane.com/news/polytek-wins-michigans-help-invest-plant?utm_source=utech-north-america&utm_medium=email&utm_campaign=20191105&utm_content=idio-headline1

November 7, 2019

Polytek Obtains Grant for Expansion

Polytek wins Michigan’s help to invest in plant

Comstock Township, Michigan – Polytek Development, which makes polyurethane systems for casting and mould making, will invest around $2.1m in a new plant and facilities here.

The investment is being helped with a $112,000 grant from the local economic development corporation. In total 28 people could find jobs at the site.

Polytek is a platform company owned by Arsenal Capital Partners.It will use the new plant to consolidate work from several other locations.

Polytek has several locations from which it could chose to merge work into Michigan following a concerted programme of purchases. It bought:

  • BCC Products in October;
  • Stone Coat Countertops, an epoxy formulator in August; and,
  • ProMarine Supplies, also an epoxy formulator came into the fold earlier this year.

Before Arsenal bought Polytek, Polytek expanded when its previous owner bought Alumilite in 2018.

Mike Faupel is the vice president of Polytek’s Alumilite division. He said: ‘We would like to thank Michigan Economic Development Corporation and Southwest Michigan First for their time and support. We are eager to expand our team and develop community partners in Comstock township.’

https://www.utech-polyurethane.com/news/polytek-wins-michigans-help-invest-plant?utm_source=utech-north-america&utm_medium=email&utm_campaign=20191105&utm_content=idio-headline1

November 2, 2019

IMCD Integrates HORN

 

IMCD Establishes National U.S. Footprint as One Company with Full Integration of HORN

 

ROTTERDAM, The Netherlands (1 November 2019) – IMCD N.V. (“IMCD” or “Company”), a leading distributor of specialty chemicals and food ingredients, today announced that it has completed the integration of HORN into its IMCD US operations. HORN was acquired by IMCD in August 2018 and its integration completes the company’s transition into one IMCD US organization with dedicated market focus. Operating coast-to-coast, the IMCD US technical sales team offers a robust product portfolio with representation of leading global suppliers.

 

“With the full integration of HORN, IMCD has created an industry-leading distribution channel, well-positioned for further growth in the U.S.,” said Marcus Jordan, President, IMCD Americas. “Operating as one unified team, we provide our suppliers and customers with coast-to-coast coverage and expertise through our enhanced talent pool of market-driven experts. Having complementary values of entrepreneurship, transparency and expertise, IMCD is committed to building on HORN’s decades-long reputation of service excellence and expertise.”

 

IMCD made its U.S. debut in 2015 and has since acquired and integrated five specialty chemical distributors – M.F. Cachat, Mutchler, Bossco Industries, L.V. Lomas and now HORN. By completing the full integration of California-based HORN, IMCD has established itself as a U.S. leader in specialty chemicals and ingredients distribution with the distinction of having a national footprint as one company. As part of HORN’s integration, IMCD has made major investments in digitalization, application laboratory expansion, recruitment of additional technical personnel and the implementation of IMCD’s global IT platforms to further secure and uphold the company’s commitment in delivering excellence and value through expertise. The former headquarters of HORN now serves as the Western U.S. regional hub for IMCD.

 

IMCD US operations include 375 employees, five laboratories, more than 20 strategically located warehouses and five regional offices to complement and support its commercial and technical activities dedicated to serving specialized markets across the nation. Key market-focused segments in the U.S. include coatings and construction, advanced materials, oil and gas, food and nutrition, animal nutrition, pharmaceuticals, nutraceuticals and personal care.

 

Media Contacts:

 

IMCD GROUP                                    IMCD Americas

Marnie Kontovraki                               Ella Pochay

+31 6 28041510                                  +1 562 292 9071

communications@imcdgroup.com     ella.pochay@imcdus.com

 

 

###

 

About IMCD N.V.

IMCD is a market-leader in the sales, marketing and distribution of speciality chemicals and food ingredients. Its result-driven professionals provide market-focused solutions to suppliers and customers across EMEA, Asia-Pacific and Americas, offering a range of comprehensive product portfolios, including innovative formulations that embrace industry trends.

 

Listed at Euronext, Amsterdam (IMCD), IMCD realised revenues of € 2,379 million in 2018 with more than 2,800 employees in over 47 countries on 6 continents. IMCD’s dedicated team of technical and commercial experts work in close partnership to tailor best in class solutions and provide value through expertise for around 43,000 customers and a diverse range of world class suppliers.

 

To find out more about IMCD, please visit www.imcdgroup.com.

 

November 2, 2019

IMCD Integrates HORN

 

IMCD Establishes National U.S. Footprint as One Company with Full Integration of HORN

 

ROTTERDAM, The Netherlands (1 November 2019) – IMCD N.V. (“IMCD” or “Company”), a leading distributor of specialty chemicals and food ingredients, today announced that it has completed the integration of HORN into its IMCD US operations. HORN was acquired by IMCD in August 2018 and its integration completes the company’s transition into one IMCD US organization with dedicated market focus. Operating coast-to-coast, the IMCD US technical sales team offers a robust product portfolio with representation of leading global suppliers.

 

“With the full integration of HORN, IMCD has created an industry-leading distribution channel, well-positioned for further growth in the U.S.,” said Marcus Jordan, President, IMCD Americas. “Operating as one unified team, we provide our suppliers and customers with coast-to-coast coverage and expertise through our enhanced talent pool of market-driven experts. Having complementary values of entrepreneurship, transparency and expertise, IMCD is committed to building on HORN’s decades-long reputation of service excellence and expertise.”

 

IMCD made its U.S. debut in 2015 and has since acquired and integrated five specialty chemical distributors – M.F. Cachat, Mutchler, Bossco Industries, L.V. Lomas and now HORN. By completing the full integration of California-based HORN, IMCD has established itself as a U.S. leader in specialty chemicals and ingredients distribution with the distinction of having a national footprint as one company. As part of HORN’s integration, IMCD has made major investments in digitalization, application laboratory expansion, recruitment of additional technical personnel and the implementation of IMCD’s global IT platforms to further secure and uphold the company’s commitment in delivering excellence and value through expertise. The former headquarters of HORN now serves as the Western U.S. regional hub for IMCD.

 

IMCD US operations include 375 employees, five laboratories, more than 20 strategically located warehouses and five regional offices to complement and support its commercial and technical activities dedicated to serving specialized markets across the nation. Key market-focused segments in the U.S. include coatings and construction, advanced materials, oil and gas, food and nutrition, animal nutrition, pharmaceuticals, nutraceuticals and personal care.

 

Media Contacts:

 

IMCD GROUP                                    IMCD Americas

Marnie Kontovraki                               Ella Pochay

+31 6 28041510                                  +1 562 292 9071

communications@imcdgroup.com     ella.pochay@imcdus.com

 

 

###

 

About IMCD N.V.

IMCD is a market-leader in the sales, marketing and distribution of speciality chemicals and food ingredients. Its result-driven professionals provide market-focused solutions to suppliers and customers across EMEA, Asia-Pacific and Americas, offering a range of comprehensive product portfolios, including innovative formulations that embrace industry trends.

 

Listed at Euronext, Amsterdam (IMCD), IMCD realised revenues of € 2,379 million in 2018 with more than 2,800 employees in over 47 countries on 6 continents. IMCD’s dedicated team of technical and commercial experts work in close partnership to tailor best in class solutions and provide value through expertise for around 43,000 customers and a diverse range of world class suppliers.

 

To find out more about IMCD, please visit www.imcdgroup.com.