Acquisition Builds on Cluster of Investments in the European PVC Downstream Sector
LOS ANGELES, CA and PARIS, FRANCE – July 31, 2015 – OpenGate Capital, a global private equity firm, announced today that Kem One Group SAS, owned jointly with Alain de Krassny, has acquired Kem One Innovate Vinyls from The Klesch Group. Alain de Krassny is a veteran in the European chemicals industry and President of Donau Chemie. Kem One Innovative Vinyls produces downstream polyvinyl chloride, “PVC,” products including compounds, and profiles and tubes from its facilities in Europe, Asia and Mexico. Terms of the transaction were not disclosed.
Kem One Innovative Vinyls produces and distributes rigid and flexible end products that are used in a variety of applications across a multitude of industries including automotive, construction, furnishings, electrical, packaging, paramedical, healthcare, industrial equipment and others. The business operates under two names, Resinoplast, which specializes in compounds manufacturing, and Alphacan, which produces converted materials including window profiles and tubes. Kem One Innovative Vinyls is headquartered in France, has 13 plants across Europe, Asia and Mexico, revenues of approximately €350 million, 1,200 employees, and serves a global customer base.
Andrew Nikou, OpenGate Capital’s founder, Managing Partner and CEO stated, “This transaction represents the fulfillment of a three-year strategy at OpenGate. We studied the European building and construction market as far back as 2012, identified several areas of opportunity, and since then have been acquiring PVC-related businesses that were non-core to larger corporations including Kem One and our other portfolio companies, Benvic and Profialis. The acquisition of Kem One Innovative Vinyls is an important addition to our cluster of highly synergistic and complementary businesses within Europe’s PVC industry that serve a multitude of markets and customers throughout the world. OpenGate’s European team has worked tirelessly to complete this acquisition and I am incredibly proud of the efforts of our entire global team.”
OpenGate Capital’s European office led the transaction and it was managed principally by the firm’s Partners, Julien Lagrèze and Sébastien Kiekert Le Moult. Julien Lagrèze commented, “When we consider the four lines of business across our investments – Benvic, Resinoplast, Profialis and Alphacan – we have achieved appropriate scale, diversity, established customers, and a real opportunity to leverage each line to create significant new value.”
Sebastien Kiekert Le Moult added, “Through our relationships with leading corporations, we were able to directly source and acquire the businesses within our PVC cluster. Since 2007, OpenGate has built out its European presence, and we have developed unique skills that enable us to navigate the complexities of acquiring businesses within Western Europe. Kem One Innovative Vinyls was an exceptionally complex process that began nearly 18 months ago, and today adds significant scale to our buy and build strategy.”
OpenGate Capital’s PVC related cluster of investments represent €550 million of revenue generated among the following:
- PVC Compounds Manufacturing:
a. Benvic – Acquired in 2014 from Solvay. Located in France, Italy and Spain
b. Resinoplast – Acquired in 2015 from Klesch Group. Located in France, Germany, Italy, Spain, Mexico, Vietnam, China and Japan
- PVC Converting (window profiles, tubes, etc)
a. Profialis – Acquired in 2013 from Tessenderlo Group. Located in France
b. Alphacan – Acquired 2015 from Klesch Group. Located in France, Germany and the Netherlands
The acquisition of Kem One Innovative Vinyls follows OpenGate Capital’s partnership with Alain de Krassny in the acquisition of Kem One Group SAS, completed in January 2014. Kem One SAS is an upstream producer of PVC resins that will continue to serve as a source of raw materials to Kem One’s downstream operations, Resinoplast and Alphacan.
The team supporting this transaction included the following:
- Deal coordination: Lionel Spizzichino, Partner – Paul Hastings LLP
- Restructuring: Lionel Spizzichino, Partner and Audrey Nelson – Paul Hastings LLP
- Corporate: Etienne Mathey, Partner and Charlotte Pennec – Paul Hastings LLP
- Beijing & Shanghai support: David S. Wang, Partner, Jia Yan, Lily Li Zhang and Ella Hang – Paul Hastings LLP
- Milan office: Paolo Manganelli, Partner and Simona Martuscelli – Paul Hastings LLP
- Transaction support to OpenGate Capital: Dimitri Dimitrov, Partner and Edgard Nguyen – Gide Loyrette Nouel LLP
- Transaction support to Alain de Krassny: Stephane Vital Durand and Bertrand de Belval – Colbert Avocats
- Accountant: Jamal Gartill – Cabinet Gartilli
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.
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