Arsenal Capital Partners, a private equity firm based in New York, has inked a contract to purchase Evonik Industries’ global colorants business.
The colorants business of Evonik produces and supplies the paints of COLORTREND brand for decorative uses in the architectural industry. The CHROMA-CHEM product line is utilized in industrial applications, which include marine, maintenance and timber coatings. The formulation of the colorants is done keeping in mind, environmental sustainability. This colorants business produced a profit of approximately €130 million during 2011. Evonik has production units in Australia, Canada and Netherlands, besides the Ohio facility.
According to John Televantos, Co-Head of the firm's Specialty Industrials Group and a Partner in Arsenal, the colorants business of Evonik is maintaining a strong reputation in the industry by offering high-level quality and performance to the customers. It is believed that the knowledge and resources of Arsenal will benefit this solid colorants business. Arsenal is expecting to support and organically build the business. This kind of planned acquisitions will help in the network expansion.
The Board of Management from Evonik, Dr. Thomas Haeberle has stated that the company’s sale to Arsenal has opened potential opportunities to develop its colorants business. The company has been acquired by good hands and is happy with the deal.