Investcorp has sold Esmalglass, a Spanish maker of colourings and glazes for ceramics, to Lone Star in a deal that values the business at €605m.

The firm will make a return of around 4x on the deal, according to a person with knowledge of the transaction. Investcorp acquired Esmalglass for around €200m in 2012 from 3i.

Founded in 1978 in Villareal, the business produces a range of colourings and glazes for ceramics. It employs around 1,400 people in product development, sales and manufacturing operations throughout the world. It reported sales of around €400m in 2016.

The company’s earnings have increased under Investcorp’s ownership due to organic growth and the acquisition of the Fritta group in 2015, another Spanish ceramics business.

Investcorp considered listing Esmalglass in 2014.

Investcorp was advised on the transaction by Lazard and Jones Day.


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