Advent Sells Allnex to PTT for €4 Billion

16.07.2021 - To gain a berth in the sustainable industrial coatings market, Thailand’s PTT Global Chemical (PTTGC), a 45% affiliate of Bangkok-based, state-owned energy major PTT, is paying Advent International €4 billion for the private equity giant’s Germany-based Allnex resins portfolio company. The selling price is more than 12 times last year’s EBITDA.

The transaction between Advent and PTT’s Dutch holding is expected to close in this year’s fourth quarter, subject to regulatory approvals. Linking with the Thai petchems company is designed to improve Allnex’s access to raw materials and to the growing Asian market for coating resins. For the buyer it will mean gaining access to environmentally friendly technology. “

Acquired by Advent in 2013 as part of a carve-out from Cytec Industries, the German company currently has sales of €2 million and around 4,000 employees in a global production network of 33 manufacturing sites and 23 research and technology facilities.

Allnex produces a wide range of industrial coatings, including powder resins, waterborne resins, energy curable resins and crosslinking resin and supplies mostly customers in the industrial, metal, automotive and packaging industries. The company also manufactures composites and coatings additives for use on all types of substrates, such as wood, metal and plastics.

By its own account, the private equity owner has invested considerable sums in building up the acquired company’s business in preparation for resale. In 2016, it bought Dutch-based resins manufacturer Nuplex and merged the two companies. Advent said its “investment in growth” totaled more than €1.5 billion.

Ronald Ayles, managing partner and head of Advent’s global Chemicals and Materials unit, said the private investor’s significant investment in growth has led to “an impressive track record,” especially in green technologies.

As the global market leader in industrial coating resins, with a broad portfolio, stable profit and leading green technology, Kongkrapan Intarajang, CEO of PTTGC, said allnex is ideally positioned to benefit from three megatrends shaping the industry: increasing demand for high performance coating resins, a continued shift of growth to emerging markets and a trend towards green coatings solutions.

PTT Invests in renewable energy, too

Separately, Global Power Synergy , the power arm of PTT Group, has acquired a 41.6% a stake in Indian renewable energy provider Avaada Energy for about 14.8 billion baht ($453 million). Financial terms of this transaction were not disclosed.

Avaada Energy develops and operates solar power plants in India leveraging long-term power purchase agreements with central and state governments of India as well as commercial customers. The company has a total committed capacity of about 3,744 megawatts, including around 2,352 megawatts that are under construction with expected commercial operations by 2021-2022, the Bloomberg news agency said.

Author: Dede Williams, Freelance Journalist