CVC Capital Partners ("CVC") today announced that it envisages to sell AOC, a leading global producer of specialty formulations, to an affiliate of Lone Star Funds (“Lone Star”). The contemplated transaction is subject to AOC workers' councils information and consultation and relevant regulatory authorities' approval.
Headquartered in Schiphol, The Netherlands, AOC is a global CASE & Colorants leader, producing and formulating unsaturated polyester formulations, vinyl ester formulations, and other solutions for applications in Coatings & Protective Barriers, Colorants & Visual Effects, Adhesives, and Conventional Composite Formulations.
AOC serves customers globally with specialty products for the automotive, marine, corrosion, construction, and infrastructure segments. The Company has production facilities in the U.S., Canada, Mexico, Europe, and Asia.
Under CVC Funds’ ownership, AOC realized significant growth, evolving from a strong regional player to a global composites leader through the strategic combination with The Alpha Corporation in 2018. Under the leadership of Joe Salley, AOC developed into a best-in-class specialty formulations platform with a clear path for continued sustainable growth.
Steven Buyse, a Managing Partner at CVC, said: “We are tremendously proud of the achievements of AOC and its management team. AOC is an outstanding business, and we want to thank Joe Salley and the rest of the management team for the successful partnership and wish them every success in the envisaged next phase of AOC's exciting journey.”
“Lone Star recognizes AOC’s role as a trusted partner to thousands of customers across the globe seeking to optimize the critical performance attributes of their products,” said Donald Quintin, President, Opportunity Funds, Lone Star. “AOC’s world class management team has positioned the company to accelerate its growth trajectory in a variety of end markets, applications, and geographies through operational excellence and continued product innovation. AOC aligns well with Lone Star’s portfolio of specialty chemical and manufacturing businesses, which have adopted similar approaches to value-add product delivery. We look forward to the envisaged partnership with the AOC team as the company continues to execute its growth strategy.”
Joe Salley, CEO of AOC, said: ”I am very proud of the accomplishments of my colleagues, and on their behalf, extend our gratitude to CVC for their stewardship of this business. Steven Buyse and his team have been ideal sponsors; our successes and opportunities would not have been possible without them. We are excited about the prospects for AOC and the envisaged partnership with the Lone Star team to create an even stronger company.”
J.P. Morgan served as financial adviser on the transaction to CVC, with Clifford Chance as legal counsel. Lone Star was advised by Lazard and Vinson & Elkins. Management was advised by Jamieson Corporate Finance, Katzke and Morgenbesser. BofA Securities and RBC Capital Markets provided the financing commitments for the transaction, and Kirkland & Ellis LLP acted as legal advisor to Lone Star on the financing commitments.
About AOC
AOC is the leading global supplier of specialty formulations and solutions which enable customers to create robust, durable, and versatile products and components for applications in Coatings and Protective Barriers, Colorants and Visual Effects, Adhesives and Specialties, and Composite formulations. With strong capabilities worldwide in manufacturing and science, the company works closely with customers to deliver unrivaled quality, service, and reliability for today and create innovative solutions for tomorrow.
About CVC
CVC is a leading private equity and investment advisory firm with a network of 24 offices throughout Europe, Asia and the US, with approximately US$115 billion of assets under management. Since its founding in 1981, CVC has secured commitments in excess of US$163 billion from some of the world's leading institutional investors across its private equity and credit strategies. Funds managed or advised by CVC are invested in over 90 companies worldwide, which have combined annual sales of approximately US$100 billion and employ more than 450,000 people. For further information about CVC please visit: www.cvc.com.
About Lone Star
Lone Star is a leading private equity firm advising funds that invest globally in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 21 private equity funds with aggregate capital commitments totaling approximately $85 billion. The firm organizes its funds in three series: the Commercial Real Estate Fund series; the Opportunity Fund series; and the U.S. Residential Mortgage Fund series. Lone Star invests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. For more information regarding Lone Star Funds, go to lonestarfunds.com.
