Cinven Closes USD 2 Billion Deal For Rockwood’s CeramTec

Cinven is a leading private equity firm that was established in 1977. The company has offices in Frankfurt, Guernsey, London, Milan, Paris, Luxembourg as well as Hong Kong. At the moment, the firm has raised five funds, with the latest fund signing up 5 billion euros. Cinven is completely focused on European acquisitions and buyouts, with investment coming from more than 111 institutional shareholders from twenty two countries.
Cinven’s funding base initially came only from the three U K pension funds that remain as essential to investors. The Cinven has been originally reported to stand for the Coal Investment Nominees’ aimed at Venture Capital.The Cinven is presently investing within six sectors on the international basis: the Business Services; Customer; Financial Services; Healthcare; Industrials; and lastly TMT.
The European based private equity firm, Cinven, has agreed recently to acquire the ceramics maker business CeramTec. Cinven will be buying the company from Rockwood Holdings. The deal will close at a whopping 1.49 billion euros, or 1.98 billion US Dollars.
In 2013 Ceratec undertook a cultural shift toward a client-centered perspective with the intent of helping their channel partners grow their business. The company is a learning organization with an agile approach.
Cinven said that With a huge portfolio of products they have to offer, that include hip joint prostheses parts and high-speed cutting tools, CeramTec produces ceramics for the medical, automotive, industrial and electronic markets. The company is planning a plant expansion and expects to launch new products for the LED lighting and semiconductor sectors.
The Princeton-based company, Rockwood, said that the sale was part of the company’s bigger plan to focus more as a specialty chemical firm, the company added by saying that it would use the proceeds to lessen debt and return capital to investors.
Based in Germany, CeramTec, manufactures high-performance ceramics used in the automotive and industrial markets. According to a company statement, the firm made a revenue of 425 million euros last year.
Cinven said that they are planning to use CeramTec’s current 18 facilities across the world to expand into new industries.
Bruno Schick, a partner at Cinven, said the following in a statement.“We are keen to support the company’s growth outside its core European markets, specifically in North America and Asia,”
The deal represents the fourth acquisition from Cinven’s latest fund of 5.3 billion euros. The company’s newly raised capital also has been invested in firms in Turkey, France and Britain.
CeramTec’s deal is expected to close in the third quarter of the year.
Lazard and the law firm Willkie Farr & Gallagher advised Rockwood on the deal.