OM Group, a New York-listed coatings provider, has bought Rahu Catalytics, which provides materials for environmentally-friendly coatings, composites and inks, from corporate venturing unit Unilever Ventures (UV) and the company’s management. A source close to the deal said the price tag was about £35m ($50m).
Rahu was founded in early 2006 as a spin-out from Anglo-Dutch consumer goods maker Unilever’s Ventures unit that incubates ideas and takes minority equity stakes in UK entrepreneurs and managed by co-founders Paul Smith and Dermott Hill.
John Coombs, managing director of UV and non-executive chairman of Rahu, said: "It has been a very successful spin out for us of IP [intellectual property] developed in the Unilever R&D [research and development] labs originally for washing powder."
Since early 2009, Rahu has operated under an exclusive commercial agreement with OM Group with regards to its Borchi Oxy-Coat product line.
Law firm Mayer Brown and advisory boutique Clearwater Corporate Finance advised Unilever on the sale.