European private equity firm, Cinven, today announces that it has reached an agreement to acquire CeramTec from Rockwood Holdings, Inc. (NYSE. ROC) for a total consideration of €1.49 billion.

CeramTec is a leading global manufacturer of high performance ceramics for application in medical, automotive, industrial, and electronic end-markets. The Company’s proprietary product portfolio includes hip joint prostheses components, including the Biolox brand; high speed cutting tools; and ballistic ceramics for armour.

In 2012, the Company generated revenues of €425 million. Its main operations are located in Plochingen, Germany and CeramTec employs more than 3,000 people across 18 facilities worldwide.

Building on more than 100 years of innovation, CeramTec is well positioned to continue to grow within existing and new areas of application for high performance ceramics, driven by its unique materials expertise and its long-standing customer relationships. The Company will specifically benefit from:

  • market leadership in the growing joint replacement component market, driven by further penetration of ceramics components
  • strong track record of product innovation and continued investment in R&D
  • significant growth opportunities in emerging markets, notably China.

Bruno Schick, Partner and Co-Head of Cinven’s German team, said:

“Our Fund investment in CeramTec builds upon Cinven’s expertise across both the industrials and healthcare sectors, and our previous successful investments in Germany. Consistent with our investment focus, CeramTec enjoys leading competitive positions in markets with strong underlying growth. We are particularly impressed with CeramTec’s ability to consistently launch high value, innovative products through economic cycles.

“We are keen to support the Company’s growth outside its core European markets, specifically in North America and Asia, both organically and through acquisitions. Most recently, we have achieved strong growth in the US for our portfolio companies – examples include Phadia, Sebia and CPA Global. In Asia, we have the benefit of our highly experienced Asian portfolio team.”

Pontus Pettersson, Principal at Cinven, added:

“We are delighted to partner with Dr Zimmermann and his experienced team in CeramTec’s transition to an independent company. We support the Company’s strategy of ongoing investment that includes the plant expansion in Marktredwitz, and new product initiatives such as LED lighting and semiconductor applications.”

Dr Ulf Zimmerman, CEO of CeramTec, added:

“We are glad to be working with the Cinven team. They have an excellent track record of supporting companies to grow globally in both the healthcare and industrial sectors. Cinven’s investment will enable us to capitalise on the opportunities in our existing markets as well as further expand the business internationally.”

CeramTec represents the fourth investment from Cinven’s Fifth Fund following investments in Pronet, Prezioso and AMCo (the combined Mercury Pharma and Amdipharm business).

Rockwood Holdings is disposing of CeramTec as part of a broader repositioning of the Group. Completion is expected during the third quarter of 2013 subject to customary regulatory approvals.