"Our focus is future growth and value creation. That's why evaluating and optimizing our portfolio is part of our daily business", said CFO Dr Thomas Toepfer. "Providing tailor-made solutions, systems houses serve relevant market needs. However, in an advanced polyurethanes market like Europe we focus on a more centralized approach to efficiently address the needs of our customers."
With its new owner H.I.G., the European Systems Houses now have the perspective to position themselves as an independent, focused player for mid-sized customers. In Asia with its developing polyurethane markets, Covestro will continue to serve its customers through its established systems houses network.
The systems houses are part of the company's Polyurethanes segment and are offering tailor-made polyurethanes systems for customers. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Approximately 250 employees are generating annual sales of some EUR 230 million. Operations will continue at the current facilities while Covestro will continue to have strong ties with the systems houses as a key polyurethanes supplier.
Polyurethanes are a class of plastics that can be found in many areas of modern life - be it in the form of soft or rigid foam or as thermoplastic polyurethane (TPU). They are used in numerous applications like, for instance, mattresses, automobile seats, sports equipment or as insulating material in buildings and refrigerators.
With view on scale and capabilities as well as the solid asset base, the European Systems Houses perfectly fits into H.I.G.'s buy-and-build approach. H.I.G. aims to further develop their pan-European presence and to build a strong and independent European group of polyurethane systems houses with a clear focus on mid-sized customers. The company intends to continue working with the current experienced management team of the systems houses to further improve the business. The closing of the transaction is expected for the second half of 2019 after the required antitrust clearance.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over ?26 billion of equity capital under management. Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused / value-added approach:
1. H.I.G.'s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.'s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.'s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of ?28 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
With 2018 sales of EUR 14.6 billion, Covestro is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.
Find more information at www.covestro.com. Follow us on Twitter: https://twitter.com/covestro ?