CVC Capital Partners announced that it plans to sell AOC, a global producer of specialty resins, to an affiliate of Lone Star Funds. The contemplated transaction is subject to AOC workers’ councils information and consultation and relevant regulatory authorities’ approval.
AOC is a global CASE & Colorants leader, producing and formulating unsaturated polyester resins, vinyl ester resins, and other solutions for applications in coatings, protective barriers, adhesives, and conventional composite resins. It serves customers with specialty products for the automotive, marine, corrosion, construction, and infrastructure segments.
The company has production facilities in the U.S., Canada, Mexico, Europe, and Asia.
“Lone Star recognizes AOC’s role as a trusted partner to thousands of customers across the globe seeking to optimize the critical performance attributes of their products,” added Donald Quintin, president, Opportunity Funds, Lone Star. “AOC aligns well with Lone Star’s portfolio of specialty chemical and manufacturing businesses, which have adopted similar approaches to value-add product delivery. We look forward to the envisaged partnership with the AOC team as the company continues to execute its growth strategy.”
Under CVC Funds’ ownership, AOC realized significant growth, evolving from a strong regional player to a global composites provider through the strategic combination with The Alpha Corporation in 2018. Under the leadership of Joe Salley, AOC developed into a best-in-class specialty resins platform with a clear path for continued sustainable growth.
“We are tremendously proud of the achievements of AOC and its management team,” said Steven Buyse, a managing partner at CVC. “AOC is an outstanding business, and we want to thank Joe Salley and the rest of the management team for the successful partnership and wish them every success in the envisaged next phase of AOC’s exciting journey.”
Joe Salley, CEO of AOC, said: “We are excited about the prospects for AOC and the envisaged partnership with the Lone Star team to create an even stronger company.”
J.P. Morgan served as financial adviser on the transaction to CVC, with Clifford Chance as legal counsel. Lone Star was advised by Lazard and Vinson & Elkins. Management was advised by Jamieson Corporate Finance, Katzke and Morgenbesser. BofA Securities and RBC Capital Markets provided the financing commitments for the transaction, and Kirkland & Ellis LLP acted as legal advisor to Lone Star on the financing commitments.