A manufacturer of resins used in the construction industry has been acquired by New York-based private equity firm One Rock Capital Partners in an undisclosed deal.
Prefere Resins, including its £33m turnover Newton Aycliffe-based business, was sold by UK private equity owners Silverfleet Capital. The completed deal comes just three years after Prefere acquired the melamines and paraform business INEOS Enterprises.
The business makes adhesive resins used in engineered wood and insulation products, as well as other industrial applications. It runs a number of manufacturing, sales and research and development sites across Europe, including its North East factory.
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In the year to the end of December 2020 Prefere Resins UK saw turnover of £33.2m and operating profit of £2.3m. In recent years the firm said it has focused on productivity increases through "de-bottlenecking" of its operations and process optimisation.
Michael T. Koike, partner at One Rock, said: "Prefere's dedication to product innovation and commitment to its customers underscore its position as a market leader across the adhesive resins industry. We are excited to continue to partner with management as we work to advance and promote the Company's sustainability initiatives in an effort to further maximize its potential."
One Rock has previously said Prefere is a frontrunner in reducing the carbon footprint of resins production. The investor said it aimed to continue driving innovation and advancing the firm's sustainability initiatives.
Prefere describes itself as an internationally leading manufacturer of phenolic, specialty urea, and melamine resins as well as high-quality derivatives of methanol-(C1)-chemistry. The firm said that since its acquisition by Silverfleet in 2018, it had developed well, investing in new capacity, growing its product quite and achieving continuous profitable growth, as well as demonstrating strong resilience during the pandemic.
In comments made earlier this year, Prefere chief executive Elmar Boeke said the business was in "excellent shape" and had ambitious plans for the coming years. On completion of the deal he said: "We look forward to our continued partnership with One Rock. Leveraging One Rock's industry and operational experience to expand Prefere's portfolio of high-quality products will enable us to continue to provide differentiated value for our customers."
Latham & Watkins, LLP acted as legal counsel in connection with the transaction.
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