Black Diamond to become controlling stakeholder in Polynt-Reichhold

LONDON (ICIS)–Black Diamond Capital Management will become the controlling stakeholder of composites and resins maker Polynt-Reichhold after joint owner Investindustrial agreed to sell its shares in the business in a €1.3bn deal, the asset manager said on Friday.

The agreement will see Polynt-Reichhold repurchase the shares held by Investindustrial through new senior secured and  unsecured debt facilities issued through the capital markets. The arrangement will also cover the refinancing of existing debt facilities, Black Diamond added.

Affiliates of JP Morgan and funds managed by Apollo Capital have agreed to back the debt financing, which Black Diamond will backstop with an equity commitment. The deal is expected to close before the end of the year.

We are extremely pleased with what management has been able to achieve with Polynt-Reichhold thus far and are looking forward to supporting them for the next phase of growth,” said Black Diamond managing principle Steve Deckoff.

Polynt-Reichhold formed in 2017 when Black Diamond and Investindustrial agreed to merge portfolio companies Polynt and Reichhold. Headquartered in the UK, the merged company has annual revenues of around €2bn from composites, coatings, resins, intermediates and specialty polymers.