GREENWICH, Conn., May 10, 2016 /PRNewswire/ — Reichhold and Polynt are pleased to announce that they have agreed to combine their businesses to form a global company in the composite resins and coating industry with over $2.4 billion in revenues. The newly formed company (the "Group") will be owned equally by funds managed by Black Diamond Capital Management, L.L.C. ("Black Diamond") and Investindustrial.
The Group will become a leading global specialty chemicals player with significant presence both in North America and Europe. The newly formed company will benefit from further enhanced global scale and manufacturing footprint, vertical integration, extensive product portfolios of both businesses and complementary R&D competencies. Additionally, the Group expects to take advantage of the many synergies resulting from an overlap of manufacturing locations and sales, general and administrative functions among others.
Black Diamond's Managing Principal Stephen H. Deckoff commented on the transaction: "This combination brings together two strong, global businesses and positions the newly formed business to succeed in a competitive marketplace due to its scale, manufacturing and product development capabilities, and significant synergies."
The debt financing is provided by credit fund manager GSO Capital Partners.
The transaction is subject to customary regulatory approvals and is expected to close in the second half of 2016.
Founded in 1955, Polynt Group (www.polynt.com) is one of the world's largest manufacturers and suppliers of specialties, intermediates and composites for the industrial, transportation, building and construction, marine, medical, consumer and food additive markets. Polynt has manufacturing operations throughout North and South America, Europe and Asia.
Founded in 1927, Reichhold (www.reichhold.com) is one of the world's largest manufacturers of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold has manufacturing operations throughout North and South America, the Middle East, Europe and Asia.
About Black Diamond
Black Diamond is a leading alternative asset management firm that oversees approximately $7.5 billion in assets. Black Diamond is currently pursuing distressed/private equity investments for its fourth private equity fund. Black Diamond's distressed/private equity funds focus on middle market companies with market leadership positions within their sectors. Founded in 1995, Black Diamond employs investment professionals across offices in Greenwich, CT, Lake Forest, IL, London, England and St. Thomas, USVI.