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CINVEN Purchases Plochingen-based Ceramics Manufacturer for € 1.49 billion

CeramTec Group Goes to CINVEN

Long speculated – Now Official: European private equity firm CINVEN will become the new sole shareholder of the CeramTec Group, headquartered in Plochingen, Germany. Former owner Rockwood Holdings Inc. arranged to sell the ceramics manufacturer for € 1.49 billion.

The closing, which will mark the legal transfer of CeramTec GmbH from Rockwood to CINVEN, is scheduled for this September at the latest. Dr. Ulf-D. Zimmermann commented on the sale: “Once again, CeramTec will be an independent member of a private equity firm with the option of preparing for an initial public offering. Accompanying this new ownership structure are the many opportunities afforded through the extensive support of the new owners. We would like to extend a warm welcome to CINVEN and its management, including Mr. Pettersson and Mr. Schick! CeramTec is highly profitable, well-positioned in the marketplace and has a sustainable, positive business outlook. CINVEN wants to use this position as the starting point for further expansion in the Americas and Asia and to support us in our efforts to uncover additional business segments. So we can look forward to positive developments associated with the transfer of ownership in the future.”

Bruno Schick, Partner and Co-Head of CINVEN’s German team, said: "Our Fund investment in CeramTec builds upon CINVEN’s expertise across both the industrials and healthcare sectors, and our previous successful investments in Germany. Consistent with our investment focus, CeramTec enjoys leading competitive positions in markets with strong underlying growth. We are particularly impressed with CeramTec’s ability to consistently launch high value, innovative products through economic cycles.

“We are keen to support the Company's growth outside its core European markets, specifically in North America and Asia, both organically and through acquisitions. Most recently, we have achieved strong growth in the US for our portfolio companies – examples include Phadia, Sebia and CPA Global. In Asia, we have the benefit of our highly experienced Asian portfolio team.”

CeramTec is a leading global manufacturer of innovative components made from advanced ceramics. The Plochingen-based ceramics manufacturer’s products are used in many different applications today, especially in medical engineering, automotive manufacturing, electronics, equipment and mechanical engineering, defense systems, energy and environmental technologies, and in chemical industries. In 2012 the Swabian company achieved revenues of € 425 million and employed around 3,500 individuals.

CINVEN is a leading European private equity firm, founded in 1977, with offices in Guernsey, London, Frankfurt, Paris, Milan, Luxembourg and Hong Kong. Its European focus and expertise are complemented by an ability to capitalise on global growth opportunities through its Asian Portfolio team. It focuses on six sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials, and Technology, Media and Telecommunications (TMT). CINVEN acquires successful, high-quality companies and works with them to accelerate growth, using its proven value creation strategies. CINVEN take a responsible approach towards its portfolio companies, their employees, suppliers and local communities, the environment and society.

Rockwood Holdings sold CeramTec as part of comprehensive restructuring measures in the group of companies.