02-12-2024

INEOS Enterprises sells composites business to KPS Capital Partners

INEOS Enterprises has entered into an agreement for the sale of the INEOS Composites business to KPS Capital Partners LP, for an estimated consideration of c. €1.7bn at completion. We believe this to be an attractive offer that aligns with the potential future opportunities for the business. The business has combined sales of more than €800m per year and employs c. 900 employees across 17 sites and 3 technology centres in Europe, North and South America, Asia and the Middle East.

The proposed deal is expected to be completed in the first half of 2025 subject to regulatory approvals and consultation processes (in particular, with respect to the French business, for which the parties have entered into exclusive negotiations).

INEOS Composites is a leading global manufacturer of unsaturated polyester resins, vinyl ester resins and gelcoats used in the production of plastic composites for a wide range of applications across large global end-markets. The business sells a broad range of resins that allow customers to optimise certain characteristics of their products, including corrosion resistance, fire retardance, ultraviolet resistance, water and chemical resistance, thermal and electrical insulation, impact and scratch resistance, and high strength-to-weight ratios.

Ashley Reed, Chairman of INEOS Enterprises said, “Composites has been part of INEOS Enterprises for the past five years, during which time it has achieved significant improvements in safety and financial performance. Furthermore, it has solidified its market position through enhanced product quality, consistency, and strengthened operational and commercial capabilities, ensuring a strong foundation for further future growth.”

KPS manages investment funds with approximately $21.4 billion of assets under management (as of September 30, 2024).  The company has a strong track record of acquisitions and investments in manufacturing and industrial companies across a range of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing.

Raquel Vargas Palmer, Managing Partner of KPS Capital Partners, said, “We are thrilled to acquire INEOS Composites, a leading global manufacturer of specialty composite resins. The company’s leading market position and long-tenured customer base is a testament to its differentiated product quality, reliability and strong technical service capabilities. We will leverage KPS’ successful, multi-decade experience of investing in process industries, along with our commitment to manufacturing excellence and global network, to drive profitability and create an entrepreneurial culture centred on innovation, continuous improvement and superior customer experience. We look forward to partnering with Chief Executive Officer Andrew Miller and the INEOS Composites team to accelerate the company’s value creation opportunities.”