A division of Innovative Chemical Products, ICP Industrial Solutions Group provides a broad range of high-performance coatings for packaging and labelling applications, particularly in the food and pharmaceutical industries
Stahl to acquire ICP Industrial Solutions Group. (Credit: Stahl)
The Netherlands-based coatings technologies provider Stahl has agreed to acquire high-performance packaging coatings firm ICP Industrial Solutions Group (ISG) for about $205m.
The deal will bolster and diversify Stahl’s position in the field of speciality coatings for flexible materials.
A division of Innovative Chemical Products (the ICP Group), ISG provides a broad range of high-performance coatings for packaging and labelling applications, particularly in the food and pharmaceutical industries.
The firm primarily provides services in North America, where it sells 70% of its products.
ISG’s coating technologies will support the transition to more environmentally friendly packaging, which will be facilitated by Stahl’s position in ESG.
With the acquisition, Stahl’s yearly sales are expected to surpass the €1bn threshold and have an EBITDA margin of more than 20%. ISG is anticipated to post sales of about $140m in 2022.
With a group of relationship banks, Stahl has arranged a new $580m financing for the transaction, extending maturities until 2028.
Additionally, with a concentration on specialised coatings, it will be able to refinance its current credit lines and finance potential external development.
Stahl CEO Maarten Heijbroek said: “ISG is a strong strategic fit for Stahl, given the complementary nature of our business models, technologies, and footprints.
“The acquisition will enhance Stahl’s growth profile, diversify our target markets, and broaden our technology base. Speciality coatings now represent approximately 75% of group sales.
“We are excited about this opportunity and look forward to welcoming the excellent ISG team into the Stahl family.”
Subject to customary conditions, the transaction is anticipated to close before the end of Q1 2023.
In November 2019, ICP Group signed an agreement to acquire coatings manufacturer Hi-Tech Coatings from Germany-based Heidelberger Druckmaschinen for €38.5m. It serves the packaging and commercial printing industries.