Private equity firm HgCapital has bought talc mining group Mondo Minerals in an effort to expand the group’s activities and explore new markets. Mondo was bought from international white minerals group Omya for an undisclosed amount.

Private equity firm HgCapital has bought talc mining group Mondo Minerals in an effort to expand the group’s activities and explore new markets. Mondo was bought from international white minerals group Omya for an undisclosed amount.

HSH Nordbank AG acted as mandated lead arranger for €160 million (£111 million) of senior financing and €20 million (£14 million) of mezzanine financing to the European mid-market private equity firm for the acquisition.

HSH Nordbank’s senior project manager Ossi Vasala said: “The transaction was executed in extremely volatile conditions in the leveraged finance markets, but a constructive relationship with HgCapital meant that we were able to find a solution that we believed to be beneficial to all parties.”

Mondo Minerals, which had revenues of some €130 million (£90.5 million) in 2006, was created in 1998 as a merger of Norwegian, Finnish and Dutch talc mining companies. Talc is a high quality base chemical with a number of uses in key industries and Mondo has secured reserves of the raw materials for the next 40 years

Mondo’s customers are involved in a number of European industries, including paper, paint, plastics and ceramics. The group operates in two countries and supplies clients in more than 50 countries.

“Mondo is a well-established, market-leading producer of talc in Europe. Together with the present management team and staff, our intention is to support further growth and expansion of Mondo activities. We are looking to the next phase of Mondo’s development and to continue to develop products and services to meet the needs of existing and future customers,” said HgCapital partner Martin Block.

The CEO of Mondo Minerals, Wulf-Dietric Keller, added: “We view the new ownership as an opportunity for Mondo to realise its full potential by establishing itself as a truly global talc supplier. Mondo’s management plans to expand into high growth markets, based on its own secure raw materials and on its strong market base in Europe. The change in ownership is expected to improve Mondo’s capability to pursue strategic acquisitions in locations and markets not currently covered.”

HgCapital focuses on mid-market investments in the €75 million to €100 million (£52 million to £348 million) range and the acquisition of Mondo Minerals was made from its HgCapital Trust. Close Brothers acted as debt advisor to HgCapital.