Domo + Radici: Merger to Create a Global Tier-1 Compounder

Investment group Lone Star Funds has acquired the High Performance Polymers and Specialty Chemicals business units of Italian plastics company RadiciGroup.

In a press release issued in recent days, Lone Star announced the completion of the transaction agreed in February of last year. No information was provided in the latest announcement regarding the financial volume or further details of the deal. The two RadiciGroup divisions mainly comprise capacities along the entire value chain in the field of polyamides. The Advanced Textile Solutions business unit is not part of the deal.

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Lone Star also announced the signing of a binding agreement to acquire the Domo Engineered Materials (Domo EM) division of Domo Chemicals, a company based in Leuna, Germany. According to Domo, the transaction includes Domo EM’s three production sites in Premnitz, Germany; Arco, Italy; and Gorzów, Poland; subsidiaries in China, India, South Korea and the United States; an application center in Lyon, France; as well as additional development, sales and marketing capacities. Lone Star is acquiring Domo EM’s entire portfolio, in particular the “Technyl” brand, with a comprehensive range of polyamide-based compounds (PA6 and PA66).

Following completion of the Domo EM acquisition, Lone Star plans to combine these assets with the two RadiciGroup business units. Donald Quintin, CEO of Lone Star, commented: “This transformative and highly complex transaction underscores Lone Star’s ability to make differentiated, value-oriented investments. By bringing together two leading and highly complementary businesses, a scaled platform with significant industrial and technological capabilities will be created. We believe that this combination will not only strengthen the company’s competitive position worldwide, but also provide the resources and stability needed to drive innovation, support customers, and safeguard industrial expertise and jobs.”

Jochen Fabritius has been appointed Chief Executive Officer of the combined platform. He has more than 25 years of experience in the chemicals and industrial goods industry.

Global investment group Lone Star Funds is headquartered in London. Since its founding in 1995, the group has established 26 private equity funds with aggregate capital commitments of around USD 96 billion.

More information:
www.lonestarfunds.com, www.radicigroup.com, www.domochemicals.com

Lone Star Funds, London, Great Britain

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