Cinven swoops for ceramic firm in €1.5bn deal

Michael Bow
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CINVEN, the private equity house, yesterday said it would buy German ceramics firm CeramTec for €1.49bn (£1.27bn), making it one of the biggest buyouts in Europe this year.

The deal, which is expected to complete in the third quarter, is backed by cash from Cinven’s fifth fund, which closed with €5.3bn of commitments last week.

CeramTec provides high-end ceramic materials to make a variety of products, ranging from replacement hips to burglar alarms.

It was sold by New York-listed Rockwood Holdings. Last year CeramTec generated revenues of €425m.

It is thought Cinven pipped rival BC Partners to the post for the company, after outbidding it.

Cinven partner Bruno Schtick said expansion outside of Europe into North American and Asian markets would be a priority. Ceramtec boss Ulf Zimmerman said the investment would let the firm to expand.