Advent to Sell Bolix to Berger Paints
April 29, 2008
Advent International agreed to sell Polish insulation maker Bolix to Indian paint maker Berger Paints India, subject to Polish antitrust approval.
While the terms of the exit were officially undisclosed, Thomson Reuters reports Advent will receive $38.6 million for Bolix. Bolix has posted double-digit revenue growth and high profitability since Advent added the company to its portfolio in 2003, Advent said.
"They facilitated the search for a partner able to support the compnay's further expansion. Key in this respect are the business synergies between Berger and Bolix, including production technology, complementary product lines and respective geographic markets," said Bolix president Artur Lakomiec in a release.
In a press release Tuesday, Boston-based Advent said it moved Bolix from being purely a manufacturing business into a service-focused business by strengthening logistics, bolstering wholesale support and offering on-site services for contractors. Other inititatives include entering a do-it-yourself channel, introducing new products and developing exports to the Ukraine, Russia and the Baltic States.
"The prospects for the business are strong, with the boom in the Central and Eastern European construction materials industry set to continue. The continuing drive to implement energy efficiency measures also offers considerable growth potential for Bolix's exterior insulation finish systems," Advent said in a release.
A call to Advent for comment was not immediately returned.
For Berger Paints, Ernst and Young's India branch was the advisor. For Advent International, Clifford Chance and CAG shared advising duties.
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