CVC Capital Partners Acquiring Neolith
CASTELLÓN, Spain – One of the world’s largest private-equity firms will acquire sintered-stone maker Neolith.
CVC announced plans on April to acquire the Neolith Group through its CVC Capital Partners VII global private-equity fund. Terms of the transaction weren’t disclosed, although Spanish media reports earlier this year pegged a possible sale at €400 million – €500 million.
“It is a privilege to welcome CVC into the great Neolith project and its arrival will no doubt represent a new turning point in the group’s history, accelerating our ambitious strategic objectives,” said Jose Luis Ramón, CEO of Neolith Group. “Its extensive experience and global presence will be a great help to us in developing our enormous potential.”
CVC’s action marks the second time in nearly three years that Neolith will change ownership. In June 2019, the founding Esteve family sold a majority stake in the company to a subsidiary of Investindustrial, a U.K. based private-equity firm, in a deal estimated to be in the €250 million range.
“We identified the sintered-stone sector as the fastest growing niche within high-end design surfaces solutions, due to its strong technical and sustainable features,” said Andrea C. Bonomi, chairman of Investindustrial’s Industrial Advisory Board. Within the sector, Neolith is a global leader based on a strong culture of quality and R&D built by the founding Esteve family, and carried on by the excellent management team in place.”
“We are grateful for the confidence and constant support of Investindustrial and the Esteve Family in making Neolith a unique platform that has enabled us to consistently expand the business with a firm commitment based on innovation, branding, sustainability and a straightforward approach based on open collaboration,” Ramón added.
Various Spanish business-media outlets reported in January that Investindustria began shopping around its stake in the company for an estimated €400 million – €500 million. The reports also placed Neolith’s 2021 revenue at €145 million, with an EBITDA (earnings before interest, taxes, depreciation, and amortization) growth rate of approximately 20% annually during Investindustria’s ownership.
CVC is recognized as one of the giants of private-equity investment with approximately $122 billion of assets under management. It ranks third worldwide on Private Equity International’s list of investment firms, trailing only Blackstone and KKR.
CVC, headquartered in Luxembourg, is the largest private-equity investment firm in Europe. Among its most-famous investments is the majority ownership of the Formula One auto-sports franchise from 2006-2016.
“We are thrilled to have materialized this investment in Neolith so we can continue leading this industry together and undertake the next stage of the investment, which will allow the company to continue accelerating its international expansion and multiply its growth behind the unique value proposition and position it enjoys in the market,” said Javier de Jaime, CVC managing partner.
“CVC funds invest in companies with outstanding track records that are leaders in their respective industries. Neolith symbolizes what we look for in any investment: a growing global market, a unique business model and a multi-disciplinary team that is highly skilled, motivated and international.
“Our vision is to multiply value in the long term and help the company to unleash its full potential, behind sustainable growth, by committing to technology, research and development of advanced materials, design and branding.”
The CVC Capital Partners VII fund, initiated in 2017, raised $18.5 billion for investments.
