STAR Capital agrees to acquire ABL Technic
15 March 2023
STAR Capital Partnership LLP (“STAR”) is pleased to announce that the STAR IV Fund has signed an agreement to acquire ABL Technic (“ABL”), a leading global provider of de-coating services to the manufacturing sector, from funds managed by Vision Capital and Rubicon Partners. STAR will become the majority shareholder and invest alongside the management team. Completion of the transaction is subject to customary regulatory approvals.
Founded in 1987, ABL de-coats a wide range of products using thermal and chemical techniques as part of regular equipment maintenance, or to allow re-work of reject production. The company serves over 7,000 customers internationally and benefits from a leading market position with c. 30% market share in Europe.
Sustainability and the circular economy are at the heart of ABL’s proposition. The business recycles parts back into production for its clients and seeks to reduce waste and energy use for its customers and in its own sites and processes.
ABL is an excellent fit for STAR’s investment strategy: the company provides a mission critical service to a blue chip, high-quality and long-standing customer base. The company also benefits from a leading position in a highly fragmented market, making it a natural consolidator. Finally, the barriers to market entry are high due to a large initial investment needed, increasing customers’ and regulatory environmental demands and the required track record of service delivery.
ABL represents the STAR IV Fund’s second investment.
STAR has a successful track record in value generation and driving growth, typically investing in asset-based companies that provide an essential service to its customers, with enterprise value between €50 million and €1 billion.