A South Humber Bank chemical plant has seen a change in ownership structure following a share buy-out in the midst of sustained investment and strong performance.
Speciality Chemicals International Limited, of which Stallingborough-based Polynt Composites is part, is now controlled by alternative investment firm Black Diamond Capital Management, after it bought out former partner InvestIndustrial.
They had been united back in 2017 when Polynt merged with Reichhold to create the group, with strong results heralded in the new era.
The Humber site, one of the three in the UK alongside Mitcham in Surrey and Leek in Staffordshire, was originally part of Cray Valley, becoming CCP and then splitting from coatings business Arkema in 2011. It was acquired in 2014 by the Italian-founded operator.
Jeff Humberstone, general manager, said: “It is a good message for the team here, and the business in general. The results are really good for the company, I can understand why the shareholder wanted to sell, as composites are doing really well with high demand as people spend less on travel and more on boats and pools and the like. We are riding a bit of a crest at the minute.
“We have seen a lot of growth and investment in the last 12 to 18 months, we have a new reactor building for a new product we want to manufacture on site, and other things in the pipeline. Hopefully there will be more good news for the site in future.”
The stage was set for expansion back in 2019, with agricultural land alongside the existing footprint acquired, having been in various ownership following the splits and acquisitions.
It followed significant investment in the plant a decade ago, with a new technical centre and laboratories established on Laporte Road.
A team of 60 is employed, producing gel coats and resins, with a capacity of 48,000 tonnes.
The transaction, together with the refinancing of existing debt, will be covered by £1.1 billion of new senior secured and unsecured debt facilities, expected to be issued by the company in the public debt capital markets.
Affiliates of JP Morgan and certain funds managed by affiliates of Apollo Capital Management, have provided a commitment for the debt financing. Funds managed by Black Diamond have provided an equity commitment.
Steve Deckoff, Black Diamond’s managing principal, said: “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.”
The transaction is expected to complete in the next six months, subject to regulatory approvals.
