In order to implement this transaction, Polynt subsidiary PCCR USA Inc, a producer of resins for the coating and composite industries, has submitted a binding offer for the purchase of CCP Composites from French company Total.
Polynt's offer is undergoing a consultation process with CCP Composites employees. The proposed transaction is also subject to approval by the relevant antitrust authorities.
Polynt expansion
Polynt, headquartered in Italy, has four product lines: phthalic anhydride and general-purpose plasticisers; maleic anhydride, derivatives and catalysts; trimellitic anhydride and special purpose plasticisers; and unsaturated polyester resins and compounds (SMC, BMC and TMC). The company has 1500 employees in Europe (primarily Italy), China and the US and recorded revenues of $1.1 billion in 2013.
Polynt is owned by European investment group Investindustrial, which has approximately €3.1 billion of assets under management.
| Combining with Polynt Group, which operates in segments that are a strategic fit with CCP Composites, would create a top-tier industrial front-runner. |
| Patrick Pouyanné, President, Total Refining & Chemicals |
The aquisition of CCP Composites fits with Polynt's strategy to strengthen its position in Europe and worldwide by developing activities that are a strategic fit with its own. It sees the unsaturated polyester resins sector as its largest area for potential growth.
“The combination between PCCR Inc and CCP Composites is an important step in the international development and expansion of the Polynt Group and we are convinced that this transaction will enable us to reinforce our innovative skills and to respond to our clients’ needs more effectively,” says Rosario Valido, CEO of PCCR Inc and Polynt.
CCP Composites was formed in 2011 to comprise all of Total's composites activities – including Cray Valley, Cook Composites and Polymers (CCP) and distributor Composites One (which was divested in 2012). Headquartered in France, CCP manufactures unsaturated polyester resins, gel-coats, vinyl ester resins and products for the composites industry. The company has 800 employees at 26 production sites worldwide and reported revenue of $560 million in 2013.
For Total, the highly specialised CCP Composites resins business does not fit with its petrochemicals operations, notes Patrick Pouyanné, President of Total’s Refining & Chemicals.
“In joining a front-ranking global resins player, CCP Composites would be able to consolidate its position, participate to the creation of a global leader, and enjoy new growth opportunities," he says.
Synergies
The combination of CCP Composites and Polynt would lead to a synergies in products and geography, resulting in:
- a presence across the whole value chain, from upstream production of raw materials to downstream manufacture of fibre reinforced composites; and
- better coverage of leading global markets.
As the controlling shareholder in the new business, Investindustrial’s goals are to expand the overall business of the group, and the newly acquired business, by contributing its know-how in the speciality chemical sector, as well as funds for investment. The proposed acquisition by PCCR Inc includes specific assurances for the employees of CCP Composites, including the maintenance of employment and existing benefits.
“This business is an excellent fit with our existing operations in speciality chemicals and will provide us with a significant new presence in the marketplace from which to grow further in this industry," notes Andrea C. Bonomi, Senior Industrial Advisor of Investindustrial.