Platinum equity completes acquisition of dystar

Citation

(2004), "Platinum equity completes acquisition of dystar", Pigment & Resin Technology, Vol. 33 No. 6. https://doi.org/10.1108/prt.2004.12933fab.022

Platinum equity completes acquisition of dystar

Platinum equity completes acquisition of dystar

Platinum Equity has announced that it has completed the acquisition of DyStar, the premier provider of dyes and services to the fashion and textile industry. Previously, the company was owned jointly by BASF, Bayer and Hoechst/Aventis.

As a Platinum company, DyStar will remain focused on its core strengths of providing the highest quality and innovation in textile dyes and best-in-class customer service. “DyStar is the pre-eminent global brand in fashion and textile dyes, and we have a great deal of confidence in the company’s future,” said Johnny O. Lopez, Executive Vice-President for mergers and acquisitions at Platinum Equity.

Mr Lopez said that Platinum Equity Chairman Tom T. Gores expects DyStar to be a strong operating company for Platinum, with significant potential as both a standalone business and a potential platform for future add-on acquisitions.

“Tom feels very strongly that this company has world-class capabilities and will be a cornerstone in our portfolio,” Mr Lopez said. “As the management team develops its long-term business strategy, one of our top priorities will be to examine strategic add-on acquisitions that could help accelerate its growth.”

DyStar manufactures, sells and distributes dyestuffs to the fashion and textile industries. It also provides related services including supply chain management and research and development into new dye products.

Headquartered in Frankfurt, Germany, the company has approximately 3,900 employees and sales or manufacturing operations in more than 20 countries in Europe, Asia, Africa and the Americas. It posted sales of approximately US $1 billion ( 800 million) in 2003.

Platinum has assembled a global team of operations executives who will assist in transitioning DyStar and its subsidiaries, including Color Solutions International and the former textile dyes business of Yorkshire Americas Inc., which was acquired by DyStar earlier this year.

Platinum Equity’s emphasis on customer service and its expertise in multinational business integration will be invaluable in this process, said Rob Joubran, Chief Operating Officer, Platinum Equity.

“We have a customer-focused approach designed to ensure there is no disruption in service quality,” Mr Joubran said. “We understand that customer relationships are among the most important assets we acquire in a business, and we’re going to do everything we can to make sure the transition is seamless for DyStar’s customers.”

Platinum also confirmed the appointment of Dr Clemens Willée as chief executive officer, which Mr Joubran said would help ensure a smooth transition.

“Dr Willée and his management team have worked hard to maintain DyStar’s business focus throughout the sale process,” said Mr Joubran. “Their leadership will be imperative in ensuring the stability and continuity of this business moving forward.”

With the addition of DyStar, Platinum Equity’s operations portfolio now comprises 20 operating companies with more than 35,000 employees and global annual revenue of approximately US $6.5 billion (5.2 billion). Pending acquisitions will boost total portfolio operations revenue to approximately US $8 billion (6.4 billion).

“We have a great deal of momentum right now,” said Phil Norment, President of Portfolio Operations for Platinum. “This is our second billion-dollar-revenue acquisition of the year, and we have a third pending. We’ve expanded our global footprint, particularly in Europe, and we’re continuing to aggressively pursue new transactions.”