Stockholm - Swedish private equity group EQT is in exclusive discussions to acquire speciality chemicals distributor Azelis, the company has announced.
The EQT VIII fund, in partnership with the Public Sector Pension Investment Board (PSP Investments) as co-investor, has been granted exclusivity to finalise the discussions to acquire Azelis from funds advised by Apax Partners, a 19 June company statement said.
While the company did not provide further financial details of the deal, a news report by financial news website Unquote suggested that the transaction could exceed €2 billion.
EQT said it would support growth in Azelis using its experience with buy-and-build strategies, digital capabilities and a global network of industrial advisors.
Azelis was established in 2001 through the merger of Italy’s Novorchem and the French Arnaud.
Presently, the company has more than 43,000 customers and a wide product portfolio from more than 2,000 specialty raw materials producers.
Azelis turnover stands around €1.8 billion, EQT said.
The distributor’s current management team, under the leadership of Hans-Joachim Müller, will continue to lead the organisation.
“Azelis holds a leading position in the attractive specialty chemical distribution space,” said Bert Janssens, partner at EQT Partners, investment advisor to EQT VIII.
The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2018.
Necessary consultation with employee representatives are currently being conducted.
Image source: Azalis twitter