A PPM Ventures (“PPM”) led syndicate of investors has agreed the sale of Finnish Chemicals Oy (“Finnish Chemicals”), a leading global producer of pulp chemicals, to Kemira Oyj a worldwide chemicals business headquartered in Finland operating in pulp and paper chemicals, water treatment chemicals and paints, for a consideration of €345 million. The transaction is subject to regulatory approvals.
PPM, together with Montague Private Equity and MB Funds acquired Finnish Chemicals in 1996 from Nokia and UPM Kymmene. In 2000, Finnish Chemicals acquired Huron tech Corporation for $96 million. The business, which generated revenues of $180 million in 2004, employs 430 personnel and operates out of five main production facilities, three in Finland and two in the USA.
Commenting on the transaction, Peter Fearn, CEO of Finnish Chemicals, said: “The selling shareholders have consistently supported the growth of Finnish Chemicals both organically and by acquisition during the last eight years. Now, as a leading chemical industry player, Kemira Oyj is well placed to assist in the ongoing development of the business“.
Neil MacDougall, Managing Director of PPM and a member of the Finnish Chemicals’ Board since 1996, commented: “The realisation of Finnish Chemicals through a sale to Kemira Oyj illustrates PPM’s consistent strategy of supporting the development of portfolio companies and securing an exit at the approriate time for the benefit of all investors. We would like to thank all the employees of Finnish Chemicals as well as Peter and his senior management team for their enthusiasm and commitment, which has enabled investors to benefit from a transaction that will return almost four times the original investment“.
The selling shareholders were advised by Macfarlanes, SKMP Limited and Gargoyle Partners.