H.I.G. Europe to Acquire Polyurethane Systems Business from Covestro

HAMBURG, Germany–(BUSINESS WIRE)–#Europe–H.I.G. Capital, LLC (“H.I.G.”), a leading global private equity
investment firm with over €26 billion of equity capital under
management, is pleased to announce that an affiliate has signed a
definitive agreement to acquire the European Polyurethane Systems
Business (the “Company”) in a carve-out transaction from Covestro AG.
The transaction is subject to clearing by the relevant antitrust
authorities with closing anticipated for the second half of 2019.

The European Polyurethane Systems Business operates four systems houses
in Germany, Denmark, the Netherlands and Spain. It employs approximately
250 full-time employees and generates annual sales of approximately €230
million. Systems houses develop and formulate tailor-made ready-to-use
chemical blends for the production of a wide range of polyurethane
products such as insulation materials, foams, shoe soles, and building
materials. The Company serves a wide range of small- and mid-sized
customers across Europe and will be led by Dr. Jörg Schottek, an
experienced executive in the chemical industry.

“Tailor-made polyurethane solutions are used in a wide range of
applications across a large number of industries. Systems houses offer
vital value-add to customers by providing product development, technical
support and supply chain services. Polyurethanes are highly versatile
materials and new applications are constantly being developed, which
provides further demand for the services the Company offers,” said Dr.
Johannes Natterer, Managing Director at H.I.G.

“Following the carve-out from Covestro, the Company will be a leading
independent polyurethane systems business in Europe and we aim to
further expand its pan-European footprint organically and through add-on
acquisitions,” Dr. Holger Kleingarn, Managing Director at H.I.G.,
commented. “The business will continue to have strong ties with Covestro
as a key supplier of raw materials. We are pleased that with Dr. Jörg
Schottek, we have attracted a highly experienced CEO in the chemical
industry to run the business.”

Dr. Jörg Schottek added: “The polyurethane systems business of Covestro
is known for providing innovative solutions and market-leading services
to clients across Europe. As an independent company, we will build on
this position and will continue to strive for product excellence,
flexibility and impeccable customer service. I look forward to working
together with the Company’s experienced and successful management team.”

About H.I.G. Capital

H.I.G. is a leading global private equity and alternative assets
investment firm with over €26 billion of equity capital under
management.* Based in Miami, and with offices in New York, Boston,
Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as
well as international affiliate offices in London, Hamburg, Madrid,
Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes
in providing both debt and equity capital to small and mid-sized
companies, utilizing a flexible and operationally focused / value-added

1. H.I.G.’s equity funds invest in management buyouts, recapitalizations
and corporate carve-outs of both profitable as well as underperforming
manufacturing and service businesses.

2. H.I.G.’s debt funds invest in senior, unitranche and junior debt
financing to companies across the size spectrum, both on a primary
(direct origination) basis, as well as in the secondary markets. H.I.G.
is also a leading CLO manager, through its WhiteHorse family of
vehicles, and manages a publicly traded BDC, WhiteHorse Finance.

3. H.I.G.’s real estate funds invest in value-added properties, which
can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than
300 companies worldwide. The firm’s current portfolio includes more than
100 companies with combined sales in excess of €28 billion. For more
information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and


Dr. Holger Kleingarn
Managing Director

Dr. Johannes Natterer
Managing Director
+49 40 41 33 06 100

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