INEOS Enterprises to sell INEOS Composites business

INEOS Enterprises has reached an agreement for the sale of its INEOS Composites division to KPS Capital Partners (KPS) for an estimated €1.7 billion upon completion. This transaction is positioned as a strategically attractive opportunity, aligning with the evolving market dynamics and growth potential of the composites business.

INEOS Composites has combined sales of more than €800m per year and employs around 900 employees across 17 sites and three technology centres in Europe, north and South America, Asia and the Middle East.

It is a leading global manufacturer of unsaturated polyester resins, vinyl ester resins and gelcoats used in the production of plastic composites for a wide range of applications across large global end markets. The business sells a broad range of resins that allow customers to optimise certain characteristics of their products, including corrosion resistance, fire retardance, ultraviolet resistance, water and chemical resistance, thermal and electrical insulation, impact and scratch resistance, and high strength-to-weight ratios.

The transaction is expected to close in the first half of 2025, contingent upon the completion of customary regulatory approvals and consultation processes, including those related to the French business, for which INEOS and KPS have entered into exclusive negotiations.

Ashley Reed, chairman of INEOS Enterprises says: “Composites has been part of INEOS Enterprises for the past five years, during which time it has achieved significant improvements in safety and financial performance. Furthermore, it has solidified its market position through enhanced product quality, consistency, and strengthened operational and commercial capabilities, ensuring a strong foundation for further future growth.”

KPS manages investment funds with approximately $21.4 billion of assets under management (as of September 30 2024). The company has a strong track record of acquisitions and investments in manufacturing and industrial companies across a range of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing.

This sale reflects INEOS Enterprises’ ongoing strategy to optimise its portfolio and focus on areas that align with long-term growth prospects. The business will continue to leverage its global capabilities under KPS’s ownership, which is expected to drive further investment and innovation in the composites sector.

Raquel Vargas Palmer, managing partner of KPS Capital Partners, adds: “We are thrilled to acquire INEOS Composites, a leading global manufacturer of specialty composite resins. The company’s leading market position and long-tenured customer base is a testament to its differentiated product quality, reliability and strong technical service capabilities. We will leverage KPS’ successful, multi-decade experience of investing in process industries, along with our commitment to manufacturing excellence and global network, to drive profitability and create an entrepreneurial culture centred on innovation, continuous improvement and superior customer experience. We look forward to partnering with chief executive officer Andrew Miller and the INEOS Composites team to accelerate the company’s value creation opportunities.”

INEOS was advised by Piper Sandler and Slaughter and May.