The Carlyle Group and Advent International Sell HT Troplast to Arcapita

Frankfurt – The Carlyle Group and Advent International today announced the sale of HT Troplast, the European developer, manufacturer and marketer of PVC window and door profiles, to international investment firm Arcapita. Financial details of the transaction were not disclosed.

The Carlyle Group and Advent International acquired HT Troplast from RUETGERS AG in January 2005. Headquartered in Troisdorf, Germany, the company currently has 3,750 employees across production and distribution sites in 21 countries worldwide.

The focus of the investment has been two-fold: to concentrate on improving the profitability of the core division, PVC profiles, and to position the business to maximise its full growth potential.

The company successfully sold its two non-core divisions in 2005: Trocellen, a provider of cross-linked polyolefin foam products, to Furukawa Electric and Otsuka Chemical, and Dynos, a leading producer of vulcanised fibre, to M2 Capital Partners.

Significant investments have been made in HT Troplast’s manufacturing sites to enable the company to meet strongly growing demand in Europe. The company has expanded its international sales efforts and in particular established strong regional market positions in the high-growth Central and Eastern European markets.

As a result, turnover from 2004 to 2006 grew at double-digit rates, resulting in net sales of more than EUR 800 million in 2006. The company also increased its profitability, which was previously below industry benchmarks.

The prospects for the business remain excellent, with HT Troplast benefiting from a combination of high-growth levels in the European PVC profile industry, a significantly improved customer orientation and an accelerated product development programme. 

Gregor Böhm, Managing Director, The Carlyle Group, commented: “During our ownership, HT Troplast has exceeded overall market growth and profitability expectations in all of its key markets. By empowering a very experienced management team and strengthening the company’s financial standing the company has been able to realise its full potential and expand its pan-European market leadership. HT Troplast is a great example of how private equity creates value in the companies in which we invest.”

Ron Sheldon, Director of Advent International, and Ralf Huep, Managing Director of Advent International in Frankfurt added: “HT Troplast’s position as a clear market leader was reflected in the high level of interest that its sale attracted. What’s so exciting is that it still has major growth potential in strategically significant markets such as Ukraine, Romania, Turkey or Asia.”

About Advent International
Founded in 1984, Advent International is one of the world's leading global buyout firms, with offices in 14 countries on four continents. Being a driving force in international private equity for more than two decades, Advent has built an unparalleled global platform of over 100 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on cross-border, strategic restructuring and growth opportunities in five core sectors, employing a highly active ownership approach to drive earnings improvements in portfolio companies. Since inception, Advent has raised $12 billion in private equity capital and completed more than 200 buyout and private equity transactions valued at over $30 billion in 35 countries.

Advent has an established track record in the German market, having concluded ten transactions since 2005. Recent acquisitions include the fashion discount chain Takko, the manufacturer of specialty chemicals H.C. Starck, the Oxo-business of Celanese and RWE Solutions.

For more information, visit www.adventinternational.com