There are substantial benefits for the Chryso Southern Africa Group following the acquisition of Chryso from its French parent company, Materis, by LBO France a leading European equity firm firm with €4 billion under management, says Norman Seymore, vice president of the Chryso Group globally.
In South Africa, the Chryso Southern Africa Group comprises admixture producer, Chryso SA, and construction chemicals manufacturer, a.b.e. Construction Chemicals. Seymore is CEO of both companies.
“For Chryso worldwide – and particularly in South Africa – the acquisition has strong benefits because Chryso will now be a stand-alone entity globally, and the cash injection from the acquisition will provide Chryso with a new credit line to finance future growth,” Seymore stated.
He said the expanded credit reserves would enable Chryso to expedite the expansion and acquisition plans that were part of its future growth strategy. “Chryso has just acquired operations in Sri Lanka, and the Chryso Southern Africa Group has plans to establish manufacturing facilities in East and West Africa.
LBO’s acquisition has provided funding that will enable Chryso Southern Africa to become the Chryso springboard into Africa,” Seymore added.
LBO France’s announcement regarding the acquisition of Chryso for €285 million, along with the incumbent management team, states:
“This transaction follows Chryso’s successful refinancing completed in the (European) summer of 2014. Based on a moderate leverage, it gives the company the flexibility to step up its growth strategy.
“A world-leading speciality chemicals player at the service of the construction industry, Chryso specialises in admixtures and construction systems, and is renowned for its strong innovation capability.
“With sales of €239 million in 2013 and nearly 1,000 employees, Chryso is a global player, present in over 20 countries, including both developed and emerging markets – the latter accounting for over 50% of its business.
“Working with the experienced management team which has built Chryso’s current strong market position, LBO France will support the company’s ambitious business plan by reinforcing its technological leadership and continuing its geographic expansion at global level.”
More information from Norman Seymore, Tel: +27(0)11 306 9000 / www.chryso.com
