Benvic

Leading, European PVC compounder that develops, produces and markets highly-customized, innovative PVC-based thermoplastic solutions in the form of powders and compounds.

Products are utilized across a wide range of rigid and flexible end-applications including building and construction, automotive and aerospace, cabling, pharmaceutical, packaging, and fluid transport
Operations in France, Italy, and Spain
245 Employees

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Acquired:

June 2014

Transaction Type:

Proprietary, Corporate Carve-Out

Acquired from:

Solvay

Industry:

Chemicals

Headquarters:

Dijon, France

Buyer:

Investindustrial

Status:

Exited

Realized:

December 2017

Investment Merits:

Neglected and Underperforming: Benvic was non-core to Solvay operating three disparate divisions across France, Italy, and Spain, presenting multiple opportunities to improve profitability as a stand-alone entity
Operational Experience: Opportunity to leverage OpenGate’s knowledge of chemical space from prior acquisitions in the PVC sector
Proprietary Process: OpenGate contacted Solvay directly and approached them about acquiring the business. In the absence of a formal process, OpenGate acquired Benvic following a two-year period of negotiations
Pan European Footprint: OpenGate saw tremendous opportunity to leverage its experience in acquiring and guiding European businesses with operations and sales in multiple geographies

Value Creation

Optimized structure costs and raw material purchasing and reshuffled suppliers’ portfolio
Increased EBITDA by more than 176% while revenues grew a modest 13%
Completed full carve-out from Solvay, separated IT systems, and created fully stand-alone HR and finance teams
Developed new lines in France doubling the tolling capacity and volumes for Solvay with a new mixing line. Refined customer and product portfolio in Italy to improve mix. Improved working capital and economic performance. Replaced Solvay’s commercial network with Benvic’s own agents. Developed customers in the United Kingdom and Ireland and developed new products for windows manufacturers

Exit

Benvic was sourced through proprietary discussions with Solvay and acquired in June of 2014
In January of 2018, Benvic was sold to Investindustsrial, a leading European mid-market firm that saw opportunity for further growth as a platform