Texas Pacific Group to Acquire KRATON Polymers from Ripplewood Holdings, LLC
Group ("TPG") and Ripplewood Holdings LLC, both private
investment firms, today jointly announced that they have entered
into an agreement under which TPG will acquire the KRATON
Polymers Group of Companies ("KRATON Polymers"or the
"Company", headquartered in Houston, Texas, from
Ripplewood and other investors. The transaction values KRATON at
a total enterprise value of $770 million and is expected to close
by the end of the year.
KRATON Polymers is a premier, global specialty chemicals company and the world's largest producer of styrenic block copolymers ("SBCs"), a family of products whose chemistry was pioneered by the Company over forty years ago. SBCs enhance the performance of applications including adhesives, sealants, asphalt and bitumen modification, footwear, packaging, compounding and personal hygiene products. The Company has the leading position in all of its core markets and is the only producer of SBCs with global manufacturing capability. The Company has manufacturing facilities in Belpre, OH, The Netherlands, Germany, France, Brazil and Japan. The business has annual revenues in excess of $600 million.
TPG partner Kelvin Davis said,"We are enthusiastic about the opportunity to acquire KRATON Polymers. The Company is a global market leader and has consistently demonstrated its ability to grow through innovation, customer service and quality excellence. We look forward to working with CEO Steve Wood and the Companyís management and employees in continuing to expand the KRATON franchise."
Ian Snow, a Managing Director of Ripplewood, said, "KRATON has accomplished a great deal since we acquired the company in 2001, enabling us to earn an attractive return for our investors. Under the guidance of Chairman John Georges and the leadership of CEO Steve Wood and his management team, KRATON has improved its financial and operational performance and has expanded its position as the leading producer of styrenic block copolymers. We are confident that KRATON and its 1,000 employees worldwide will achieve continued success under Texas Pacific Group's ownership."
KRATON Polymers CEO Stephen Wood said, "We are enthusiastic about continuing to grow under TPG's stewardship. Over the past three years, we have accomplished a great deal including our transition to a highly successful standalone company. The support and commitment shown by TPG gives me confidence that together we will find success in the next stage of our evolution."
UBS Investment Bank acted as merger advisor to TPG. Morgan Stanley and Credit Suisse First Boston served as financial advisors to Ripplewood.
Ripplewood Holdings LLC ("Ripplewood") is a New York based private equity firm established in 1995. Ripplewood manages approximately US$4 billion of committed capital through four institutional private equity funds, focusing primarily on investments in the United States and Japan. Ripplewood pursues an "Industrial Partnership"investment philosophy, in which the firm forms partnerships with world-class operating executives to acquire businesses in targeted industries and implements pre-defined strategies to enhance the value of these businesses. In the United States, Ripplewood's investments include Asbury Automotive Group, Meyer's Bakery, WRC Media and Lillian Vernon. In Japan, Ripplewood has invested in Columbia Music Entertainment, Japan Telecom, D&M Holdings, Phoenix Seagaia Resort, Niles Parts and Asahi Tec. In 1999, Ripplewood formed an investor consortium to acquire the former Long-Term Credit Bank of Japan (currently Shinsei Bank).
Texas Pacific Group, founded in 1993 and based in Fort Worth, TX, San Francisco, CA, and London, is a private investment partnership managing over $13 billion in assets. TPG seeks to invest in world-class franchises across a range of industries including significant investments in leading retailers (Petco, J.Crew, Punch Taverns - UK), branded consumer franchises (Burger King, Del Monte, Ducati), technology (ON Semiconductor, MEMC, Seagate), airlines (Continental, America West), and healthcare (Oxford Health Plans, Quintiles Transnational).
Sept 20, 2000
Shell Sells Kraton To Ripplewood
The Anglo-Dutch oil company Royal Dutch/Shell has announced the sale of its world-wide polymer production and marketing division Kraton, concluding its programme of investment withdrawal launched in December 1998. The Shell Board has indicated that Kraton has been sold to an American subsidiary of Ripplewood Holdings but will not be revealing the price or conditions of the transaction. The sale is in line with the objectives announced by Shell Chemicals in December 1998, namely to refocus activities on basic petrochemical products and is one of the largest hive-offs ever undertaken by Shell. Neil Gaskell, Head of the investment withdrawal programme has indicated that the release of Kraton marks the end of an ambitious restructuring programme which will yield savings of USD5.7 billion, and not the USD5 billion initially anticipated.