ICIG becomes new owner of Benvic Compounds

PVC Europe Group, an independently managed investment subsidiary of Investindustrial Growth—a leading European group of independently managed investment, holding and advisory companies—has signed a binding put option for the sale of the compounds business of France-based Benvic Group to International Chemical Investors Group (ICIG) in Frankfurt, Germany. The sale is subject to consultation with Benvic’s works council in France and to EU antitrust approval, but closing is expected towards the end of the year.
Investindustrial, who acquired the company in 2018 from Los Angeles-based private equity firm, OpenGate Capital, is expected to retain Benvic’s medical activities in Italy
Founded in 1963 as a subsidiary of Solvay, the Benvic Group - with a reported €500 million in sales and 630 full- time employees  - is one of the leading suppliers of thermoplastic solutions in Europe. Since being acquired by Investindustrial, Benvic Compounds has been transformed into a global leader in thermoplastic solutions through a programme of eight add-on acquisitions across Europe and the United States. Today, the company is one of Europe’s leading PVC compounders in terms of volume. In addition, Benvic is active in the development and production of thermoplastic solutions based on engineering polymers and PLA compounds and is a leading supplier of various specialty compounding applications in the US.
In addition to the successful international build-up strategy, Benvic Compounds has pursued a number of value creation initiatives, building on the company’s core strengths, including end-market and product diversification, operational improvements and the strengthening of the management team.
“Benvic has been transformed under Investindustrial’s ownership over the last four years. Together we have taken the company to the next stage of its development, strengthening our global position in the compounding industry and improving our product offering to our customers through ongoing R&D and expansion into solutions for new applications,” said Luc Mertens, CEO of Benvic
Benvic has also seized the initiative on ESG matters, which are becoming increasingly important for all stakeholders, e.g. employees, customers, suppliers and lenders. Among other things, the company completed an ESG-linked refinancing, which in 2020 was one of the first of its kind in the European market. Environmental, Social, and Governance (ESG) considerations are at the forefront of Benvic’s strategy. In that financing, the margin has been partly tied to the fulfilment of several ESG criteria, such as the carbon neutrality of the group through recognised voluntary carbon credits from nature-based solutions, and the growth of volumes related to recycling and biopolymer activities.
This refinancing has enabled Benvic to continue its organic and acquisition-based growth strategy, a process that has enabled the company’s transition from a niche compounder into a platform for growth. As Andrea C. Bonomi, Chairman of the Industrial Advisory Board of Investindustrial, pointed out: “Benvic has thrived under our ownership as a result of a strong industrially-driven plan, with a clear investment rationale that has been executed with care and precision by our teams and management. We are confident that the company remains well positioned to continue its strong growth trajectory under its new owners.”
Benvic Group will become ICIG’s second polymers platform, next to Chlorovinyls/Vynova, said Achim Riemann, managing director of ICIG.
“Benvic is well-known for its innovation capabilities as well as its skilled and dedicated employees. We look forward to welcoming the Benvic employees to ICIG. Together we will realise tremendous opportunities to further grow the business and strengthen Benvic’s promising initiatives to also become one of the leaders in sustainable solutions for the plastics industry.”