International. Stahl, a Netherlands-based supplier of coatings technologies, has agreed to acquire ICP, a division of Industrial Solutions Group (ISG), a leader in high-performance packaging coatings.
This transaction will strengthen Stahl's position as a world leader in the field of specialty coatings for flexible materials.
ISG's coating technologies support the transition to more sustainable packaging, which will be reinforced by Stahl's environmental, social and governance (ESG) leadership position.
ISG is expected to report 2022 sales of approximately $140 million, and the acquisition will see Stahl's annual sales exceed the €1 billion mark, with an EBITDA margin of more than 20%.
ISG, a division of Innovative Chemical Products (the ICP Group), offers a comprehensive portfolio of high-performance coatings that are primarily used in packaging and labeling applications, especially in the pharmaceutical and resistant food sectors.
ISG is mainly present in North America (around 70% of sales).
Stahl has secured new financing of $580 million for the acquisition, with a group of relationship banks, extending maturities through 2028.
It will also be available to refinance its existing credit lines and finance future external growth, with a focus on special coatings.
Stahl CEO Maarten Heijbroek said: "ISG is a strong strategic combination 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."
"Special coatings now account for approximately 75% of the group's sales. We are excited about this opportunity and look forward to welcoming the excellent ISG team to the Stahl family," added Heijbroek.
The transaction is expected to close before the end of the first quarter of 2023, subject to customary conditions.
