Acquisition of INEOS Melamines & Paraform

29 March 2019
Acquisition of INEOS Melamines & Paraform sees Silverfleet Capital’s portfolio company Prefere Resins take a key step to becoming a leading global resin producer

Prefere Resins and Silverfleet Capital are pleased to announce that Fund II portfolio company, Prefere Resins Holding GmbH has agreed to acquire INEOS Melamines & Paraform Business, which is currently a part of the INEOS Enterprises portfolio.

Headquartered in Erkner, near Berlin, Germany, Prefere Resins is a European market leader in the development, production and sale of phenolic and speciality amino resins which are used as binders across the construction, insulation and industrial sectors. Operating production sites in Finland, Germany, United Kingdom, France, Poland and Romania; the company also runs three R&D sites (Germany, Austria and Finland) and four regional sales offices (Germany, UK, Finland and Austria). The Company produces around 350,000 tonnes in volume per year and employs over 320 people.

Prefere’s acquisition of INEOS Melamines & Paraform covers operations sites in USA, Germany and a tolling operation in Indonesia; significantly increasing the company’s global operations. INEOS Paraform is Europe’s second largest producer of Paraformaldehyde, and employs about 120 people at its Mainz, Germany facility. The business has been producing Formaldehyde and its downstream derivatives for more than 100 years and continues to innovate and develop its business. INEOS Melamines is a world leader in the supply of melamine resins into coatings, paper, textile, tyre, rubber, and decorative laminates industries. The business employs around 150 people at its sites in Springfield, USA and in Frankfurt, Germany.

Completion is subject to regulatory approval and the terms of the transaction were not disclosed.

“The acquisition of the Melamines & Paraform businesses from INEOS Enterprises with their leading positions in melamine resins and formaldehyde as well as formaldehyde derivatives represents a key step towards our strategic plans to grow our business to become a global resin producer,” said Arno Knebelkamp, CEO Prefere Resins Holding GmbH.

“Prefere Resins is a typical Silverfleet investment, where we invested to support a market leading specialised business achieve its next phase of international growth, and we are pleased to have been able to achieve this within a year of our initial investment,” comments Jennifer Regehr, from Silverfleet’s Munich office who led the transaction for Silverfleet.

The Silverfleet team that worked on the transaction included Jennifer Regehr and Guntram Kieferle, who are based in Silverfleet Capital’s Munich office.