Cinven to acquire German ceramics maker CeramTec for $1.98 bn

European private equity firm Cinven Partners LLP today said it would buy German ceramics maker CeramTec from Rockwood Holdings, for $1.98 billion (€1.5 billion).

Cinven beat rivals, including BC Partners, Permira Advisers, Blackstone Group and Bain Capital for CeramTec, which was put for sale earlier this year by Rockwood, a by New Jersey-based chemicals and materials manufacturer.

Founded in 1903 as a porcelain factory, CeramTec is a leading global producer of high performance advanced ceramics materials and products.

With approximately 3,000 employees and 18 facilities globally, the Plochingen, Germany-based company serves four principal end-markets, medical; electronics; industrial; and automotive.

CeramTec, which generated revenue of €425 million in 2012, has strong market positions in various niche markets such as medical products, cutting tools and mechanical applications.

"Successful execution of this transaction at an attractive multiple will bring Rockwood one significant step closer to our strategic objective and commitment to become a more focused specialty chemical company with a growth portfolio that best maximises value and returns for our shareholders," said Seifi Ghasemi, chairman and CEO of Rockwood.

"We expect to use the substantial net cash proceeds to support our balanced approach to debt reduction, return of capital to shareholders and re-investment in our complementary growth core businesses,'' he added.

''Cinven's investment will enable us to capitalise on the opportunities in our existing markets as well as further expand the business internationally,'' said Ulf Zimmermann, CEO of CeramTec.

''We are particularly impressed with CeramTec's ability to consistently launch high value, innovative products through economic cycles,'' said Bruno Schick, a partner and co-director of Cinven's German unit.

''We are keen to support the company's growth outside its core European markets, specifically in North America and Asia, both organically and through acquisitions,'' he added.

With offices in Guernsey, London, Frankfurt, Paris, Milan, Luxembourg and Hong Kong, Cinven focuses on six sectors, business services, consumer, financial services, healthcare, industrials, technology, media and telecommunications.