CBPE Capital LLP (“CBPE”) is pleased to announce it has acquired SAFECHEM Europe GmbH (“SAFECHEM Europe”) from The Dow Chemical Company (Dow). SAFECHEM Europe represents CBPE’s third investment from its most recent fund, CBPE Capital Fund IX. With CBPE as new owner, SAFECHEM Europe has an experienced partner to support its growth strategy. Terms of the transaction have not been disclosed.
Founded in 1992, SAFECHEM Europe is a leading pan-European provider of services and products related to the safe and sustainable use of solvents for surface and dry cleaning. Applications are primarily in the automotive, aerospace and measuring instrument sectors, as well as in the medical instrument and optical technology industries. SAFECHEM Europe pioneered the closed-loop SAFE-TAINER™ system which together with proprietary formulated additives and monitoring and testing services reduces chemical consumption during the cleaning process by up to 95%. The system also minimises emissions and the risks of operator handling, enabling customers to use selected solvents safely and in an environmentally responsible manner. SAFECHEM Europe services over 5,000 customers from its offices in Germany and across Europe.
CBPE has appointed William Cortazzi as Chairman. William is an experienced operator and investor in the chemicals industry having led the successful buyouts of ICI’s salt business, Vestolit from Degussa plc and Albion Chemicals from Hays PLC. William started his career at ICI where he was the product manager for the same chlorinated solvents which SAFECHEM Europe sells. He has had a relationship with CBPE for over 15 years.
CBPE is an established, leading London based mid-market private equity investor. It has extensive experience of the chemical sector, having been invested in five chemical companies over the last 15 years, acquiring assets from Dow, Degussa AG, BP plc, Chemtura Corp. and Henkel Inc. Using this experience and proven track record, CBPE will work with William and the management team to support the acceleration of SAFECHEM Europe’s growth both though geographic expansion as well as the launch of new products.
Mathew Hutchinson, Partner, CBPE, said: “SAFECHEM is a very successful company with a unique business model and one which we are confident will thrive under independent ownership. Its commitment to sustainability, quality and above all, a focus on customer requirements make it exceptional in its core market segments. We are looking forward to supporting SAFECHEM Europe’s long-term strategy, enabling the business to thrive in the future.”
Manfred Holzleg, General Manager, SAFECHEM Europe, said: “We are delighted to be working with CBPE. Dow has been a strong, supportive owner and we have now established a proven business model. With CBPE I am confident that we have a committed and reliable partner to support our exciting growth plans for the future, such as our geographic expansion and the accelerated launch of new products.”
The deal was led by Mathew Hutchinson and Jolyon Latimer at CBPE. Reed Smith acted as legal advisor to CBPE and Grant Thornton provided financial and tax due diligence. Dow was advised by The Valence Group, the specialist investment bank which focuses on the chemicals, materials and related sectors.