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BC Partners picking up Ceramtec
Posted on Wednesday, 11 October 2017 12:22
Private equity investor BC Partners has signed on the dotted line to pick up Germany-headquartered technical ceramics manufacturer CeramTec.
No financial details have been disclosed, but Reuters picked up on the announcement and cited a person in the know as saying the deal values the target at EUR 2.60 billion, including debt.
BC Partners is making the acquisition as leader of a consortium which also comprises the Public Sector Pension Investment Board and the Ontario Teachers’ Pension Plan.
The deal represents an exit for CeramTec’s current owner, private equity firm Cinven; the investor bought the business from Rockwood Holdings for EUR 1.49 billion back in September 2013.
Henri Steinmetz, chief executive of the target, noted that under the exiting investor’s ownership, the group has doubled its ceramic implant capacity at its Marktredwitz location while moving towards becoming a world leader in its field.
BC Partners managing partner Stefan Zuschke added that he believes the company has the potential for profitable growth, both organically and by making acquisitions.
Completion of the deal remains subject to the go ahead from antitrust and foreign investment authorities and is slated to follow during the first half of 2018.
CeramTec announced an acquisition of its own earlier this year; in February it agreed to purchase the UK electro-ceramics business of Morgan Advanced Materials for an enterprise value of GBP 47.00 million on a debt and cash-free basis.
The firm had previously intended to go public by listing on a stock exchange; reports on the matter emerged in June 2015, when people with knowledge of the matter told Bloomberg the possibility was being considered.
Since then both Germany and the US were mooted as potential flotation locations, but with BC Partners’ newly announced acquisition the listing will not go ahead in the foreseeable future.
CeramTec describes itself as a leading supplier of technical ceramics; its products are used in a variety of applications, including medical and mechanical engineering, automotive manufacturing, defence systems and environmental technologies.
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