LONDON - The European private equity firm Cinven agreed on Sunday to buy the ceramics business CeramTec from Rockwood Holdings for 1.49 billion euros, or $1.98 billion.
Rockwood, based in Princeton, New Jersey, said the sale was part of its plan to focus more as a specialty chemical company, adding that it would use the proceeds to pay down debt and return capital to shareholders.
CeramTec, based in Germany, manufactures high performance ceramics used in the automotive and industrial sectors, and generated revenue of 425 million euros last year, according to a company statement.
Cinven said it planned to use CeramTec’s existing 18 facilities around the world to expand into new markets.
“We are keen to support the company’s growth outside its core European markets, specifically in North America and Asia,†Bruno Schick, a partner at Cinven, said in a statement.
The deal represents the fourth acquisition from Cinven’s latest 5.3-billion-euro fund. The European private equity firm’s newly-raised capital also has been in invested in companies in Turkey, France, and Britain.
The deal for CeramTec is expected to close in the third quarter of the year.
Lazard and the law firm Willkie Farr & Gallagher advised Rockwood on the deal.
