French supermajor global oil company Total SA (EPA: FP) (NYSE: TOT), said it agreed to sell its specialty chemicals affiliate Atotech BV, a global manufacturer of high technology plating solutions, to Washington, DC-based global private equity firm Carlyle Group (NASDAQ: CG), for $3.2 billion.
The purchase price represents 11.9x Atotech’s 2015 adjusted EBITDA. The deal is subject to regulatory approval and customary closing conditions.
“Atotech, which is very active in Asia, is the worldwide leader in its high tech segment, with a business model focused on innovation and customer relationships. Carlyle will enable Atotech to pursue its growth ambitions and serve its customers while respecting its commitments towards its employees and stakeholders. This transaction is part of Total’s portfolio management strategy, which aims to align the Group’s asset base with its business ambition. It also forms part of the $10 billion divestment program over 2015-2017 announced by the group,” commented Patrick Pouyanné, chairman & CEO of Total.
Part of Total since 1993, Atotech is a global leader in metal and surface finishing technologies, with two business segments: electronics (printed circuit boards, semiconductors) and general metal finishing (for end-markets such as automobile, construction, furniture etc). Active in more than 40 countries, Atotech has over 4,000 employees worldwide, mainly in China and in Germany, with 18 production sites (6 in Europe, 8 in Asia, 4 in America) and 18 TechCenters (5 in Europe, 8 in Asia, 5 in America). In 2015, Atotech’s sales were €1 billion.
Total is a global integrated energy producer and provider, a leading international oil and gas company, and the world’s second-ranked solar energy operator with SunPower, with 96,000 employees worldwide. Totasl was founded in France in 1924 and is listed on the Paris, Brussels, London and New York stock exchanges. The company had the second-highest market capitalization on the Paris Bourse, at €100.7 billion at December 31, 2015.
Carlyle is a global alternative asset manager with $176 billion of assets under management across 128 funds and 170 fund of funds vehicles as of June 30, 2016. The firm is well positioned in Asia, Europe and the United States through its significant range of investments, and is one of the most experienced private equity investors in the global chemicals industry.
Equity for the transaction will come from Carlyle Europe Partners IV, a €3.75 billion buyout fund, and Carlyle Partners VI, a $13 billion U.S. buyout fund.
“With its intense customer focus and state-of-the-art R&D capabilities, Atotech is poised for continued growth and innovation. We look forward to partnering with the company’s management team and employees to fully realize Atotech’s potential,” said Gregor Boehm, managing director and co-head of Carlyle Europe Partners.
“Atotech is a strong business with excellent growth prospects in the global plating chemicals and equipment industry. Carlyle looks forward to supporting Atotech’s management team through continued investment in superior technology innovation and solutions for its global customer base,” added Martin Sumner, managing director on Carlyle’s Industrial and Transportation team.
Photo: Co-Founders of The Carlyle Group (L-R) William Conway, Co-CEO, Daniel D’Aniello, Chairman, and David Rubenstein, Co-CEO. (Astrid Riecken/The Washington Post)