Italian buyout firm Progressio has exited adhesives maker Forest Chemical Industries (Industrie Chimiche Forestali). The deal values the business at €69.1m and has generated a 2x money return and 33 per cent IRR for Progressio.
Progressio first backed Forest Chemical in January 2016 with a €36m investment.
The company will be acquired by a special purpose vehicle listed on AIM Italia backed by Italian investment bank Equita and fellow Italian buyout firm Private Equity Partners. As part of this process, it will change its name to ICF Group SpA.
Forest Chemical’s adhesives are used in products including cars, shoes and packaging. Founded in 1918, the business originally specialised in making adhesives from a naturally-occurring acid that it extracted from wood. It continues to identify itself as an environmentally-friendly business.
The business is based in Milan. It sells its products in around 70 countries and has turnover of €80m.