HgCapital buys Mondo Minerals(2)

The mid-market firm is backing the expansion of one of the world's biggest talc mining groups, which already owns the single largest talc production plant.

HgCapital, a European mid-market private equity firm, is buying Mondo Minerals, one of the world’s largest talc mining groups, from Omya, the international white minerals group.

Mondo has revenues of approximately €130 million in 2006. It was created in 1998 through a merger of Norwegian, Finnish and Dutch talc mining companies. The deal price was not disclosed.

Talc is a high quality base chemical with multiple industrial applications and Mondo has secure reserves of raw materials for the next 40 years.

In 2006, Mondo Minerals undertook the biggest investment project in its history, increasing finegrinding capacity at the Sotkamo plant to make it the biggest single talc production facility in the world.

Its customers are active in a variety of European industries including paper, paint, plastics, and ceramics. It operates in two countries and supplies clients in more than 50 countries.

Martin Block, Partner at HgCapital, said: “Together with the present management team and staff, our intention is to support further growth and expansion of Mondo’s activities and to continue to develop products and services to meet the needs of existing and future customers.”

The transaction is subject to approval and is expected to close by October 31, 2007.

HgCapital focuses on investments with an enterprise value in the range of €75 million to €500 million. It manages more than €2.7 billion