3i has sold Spanish ceramics business Esmalglass to Investcorp for some €200m, according to a source close to the deal.
Founded in 1978, Villareal-based Esmalglass produces ceramic glazes and colours as well as inks and decorative products for tile surfaces. The company has manufacturing facilities in Portugal, Brazil, Italy, Russia, Indonesia and China, and generated revenues of €270m last year.
More than half of the company's sales come from Latin America, the Middle East and Asia.
The deal is a boon for 3i, which last month announced a widespread overhaul of its strategy and operations, which includes major cuts to offices, job losses and a greater focus on debt management and infrastructure. This week the firm set up a US debt arm by partnering with Fraser Sullivan Investment Management. As a result of the deal, 3i will hold an 80 per cent stake of the new US business.
Together with the recently announced acquisition of Invesco’s European CLO management contracts by 3i, the new deal will increase the firm's debt arm's total assets under management to some $10.2bn.