In July 1995 Cinven backed the buyout of UK-based Kemira Polymers from the Finnish state owned chemicals company Kemira Oy. Renamed Hyperlast Limited, the business was a specialist in materials engineering which designed, manufactured and marketed polyurethane plastics for use in a variety of industrial and manufacturing applications. Its core skills lay in producing higher margin, speciality products, often working in partnership with larger commodity chemicals producers.
The management team was highly experienced and had worked in the business for the previous seven years. Its strategy was to increase sales using recently installed state of the art manufacturing facilities acquired with the business. The company operated in a market which was growing at a steady rate and at the same time would be shortly bringing to market several products expected to contribute to the strong cash generation.
Three years after investment an offer for the business was received from a trade buyer. The sale was at a level which provided Cinven’s investors with a significant return on their initial investment.
Mulitiple returned on investment: 2.8x