Press Release: SVPGlobal Announces Sale of VESTOLIT
Greenwich, CT, August 4, 2014 – Strategic Value Partners LLC (“SVP Global”), a leading global investment firm focused on distressed and deep value opportunities, today announced that it has entered into a definitive agreement to sell VESTOLIT GmbH (“VESTOLIT”) to Mexichem S.A.B. de C.V. (“Mexichem”) on behalf of its managed funds and accounts for a purchase price of €219 million in cash and assumed liabilities.
Based in Marl, Germany, VESTOLIT is one of Europe’s top two producers of paste PVC, for flooring, wallpaper and underbody protection for cars. It is also the only producer of High Impact Suspension PVC (HIS-PVC) for weather-resistant and energy-efficient windows. VESTOLIT also produces alkyl-chlorides, a value-added intermediary used for a variety of chemical and industrial applications.
Under SVP Global’s ownership, the profitability of VESTOLIT has grown and the business has made a number of advances, such as completing its transition to more environmentally friendly membrane electrolysis production techniques. Total installed capacity is now 415,000 tons per year and in 2013 the company generated a turnover of €477 million with sales and marketing representatives in more than 35 countries.
Victor Khosla, Founder and Chief Investment Officer at SVP Global, said: “VESTOLIT’s technical capabilities have always set it apart, enabling resilient performance even during challenging economic periods. We are pleased to have entered into this agreement with Mexichem, which we believe will be an excellent owner for VESTOLIT’s next phase of growth in a sector that is undergoing a period of rapid and exciting change in Europe. We are delighted to have worked with the management team of VESTOLIT and wish them and Mexichem every success.”
Michael Traeger, CEO of VESTOLIT, said: “We would like to thank SVP Global for its support over the last few years. We are pleased to be joining Mexichem, a globally recognized company in specialty chemicals that has international reach and a multiproduct offering. This transaction is good for both our customers and VESTOLIT’s business.”
About SVP Global
SVP Global was founded in 2001 by Victor Khosla. With approximately $5 billion in assets under management, SVP Global is a leading global investment firm with primary offices in Greenwich (CT), London, Frankfurt and Tokyo, focused on distressed and turnaround investments. SVP Global seeks to create value in its investments through its substantial industry, restructuring and operating experience.