Reichhold and Polynt have announced that they have agreed to combine their businesses to form a global company in the composite resins and coating industry with over $2.4 billion in revenues.  The newly formed company (the Group) will be owned equally by funds managed by Black Diamond Capital Management (Black Diamond) and Investindustrial.

The Group will become a leading global specialty chemicals player with significant presence both in North America and Europe.  The newly formed company will benefit from further enhanced global scale and manufacturing footprint, vertical integration, extensive product portfolios of both businesses and complementary R&D competencies.  Additionally, the Group expects to take advantage of the many synergies resulting from an overlap of manufacturing locations and sales, general and administrative functions among others.

Black Diamond's Managing Principal Stephen H. Deckoff commented on the transaction: "This combination brings together two strong, global businesses and positions the newly formed business to succeed in a competitive marketplace due to its scale, manufacturing and product development capabilities, and significant synergies."

The debt financing is provided by credit fund manager GSO Capital Partners.