Vienne, France -- European private equity firm Cinven Partners llc said 25 June that it is to acquire Prezioso Technilor from Indigo Capital for an undisclosed amount.
Prezioso is a leading provider of coating and insulation services to maintain industrial infrastructure in the energy and infrastructure sector. Its services are critical to protecting the integrity of off-shore oil and gas and nuclear installations. Oil and gas uses form 67.5 percent of its sales and nuclear protection 22.5 percent.
The French company offers pre-insulation of pipelines for liquid natural gas using several layers of polyisocyanurate foam, interleaved with a polyester/aluminium sandwich and covered with a fibre-reinforced polymer layer. Other products are anti-corrosion and waterproofing coatings, some based on polyurea or polyurethane.
Cinven said the company is the market leader in its core markets where it primarily serves blue chip Western energy companies, such as EDF, Total, BP and Exxon.
Prezioso's markets in the O&G and nuclear industries are expected to deliver double-digit growth over the next five years, said Cinven. This surge in demand is driven by "an increase in the number of off-shore O&G installations - and their maintenance requirements - and by the lifetime extension of nuclear reactors and more stringent maintenance requirements following Fukushima," the investment group added.
Over the last five years, a Cinven statement said, Prezioso has "delivered outstanding revenue growth of over 15 percent per annum. In 2011, its sales were Euro 320 million ($400 million).
Headquartered in Vienne, France, Prezioso was founded in 1957 and employs over 2700 staff globally.
Commenting on the 25 June announcement, Nicolas Paulmier, a Cinven partner, said: "Prezioso already has strong international operations. Together with management, we have identified significant growth opportunities in other markets including Brazil, the Middle East and Northern Europe."
He added that Cinven's European arm is investing in businesses where growth is "primarily driven by exposure to rapidly growing emerging markets."
For Prezioso, ceo Erwoan Naour, said, "The economic value of the assets Prezioso maintains is very high. Performing maintenance work in operational conditions without disrupting the production is a challenge we take up every day for our customers."
Naour said in the safety critical sectors Prezioso serves, customers will only rely on a provider such as Prezioso with "strong knowledge and a long track record of a 'zero-defect' service."
The Prezisio executive said Cinven is "the right partner to help grow the business globally organically and through acquisition, given their experience of doing this successfully with other companies."