A BC Partners-led consortium has agreed to buy CeramTec from Cinven.
A group including BC Partners, Public Sector Pension Investment Board (PSP Investments) and Ontario Teachers’ Pension Plan, will acquire the ceramics manufacturer in a deal which values the business at €2.6bn including debt, giving Cinven a return of 3.2x, Real Deals understands.
The deal value is an increase from the previous €2.4bn mooted when the sale was revealed in August.
CeramTec, which produces technical ceramics used in the manufacture of artificial hips, circuit boards, bearings and faucets, employs more than 3,400 people across 20 facilities worldwide. In the year to June 2017 the company generated revenues of €538m and adjusted Ebitda of €196m.
Cinven acquired the business from Rockwood Holdings for €1.5bn in 2013. During the private equity house’s investment period CeramTec increased revenues by 27 per cent from €425m to €538m and improved its Ebitda margin from 32 per cent to 37 per cent.
It unsuccessfully attempted a listing in 2015 before bolting on US rival DAI Ceramics in 2016 and UK electro-ceramics group Morgan Advanced Materials earlier this year.
Cinven was advised by BofA Merrill Lynch, Morgan Stanley, Clifford Chance, McKinsey, PricewaterhouseCoopers, Ernst & Young and ERM.