BC PARTNERS & CPPIB (CANADA PENSION PLAN INVESTMENT BOARD) take majority stake in CERAMTEC

Private equity firm BC Partners and the Canada Pension Plan Investment Board (CPPIB) have partnered to acquire advanced ceramics producer CeramTec. Following the completion of the deal, BC Partners and CPPIB will each hold a 50% equity stake in the company. The transaction facilitates the buyout of the stake previously held by BC Partners alongside its co-investors, which included the Ontario Teachers' Pension Plan (OTPP), Public Sector Pension Investment Board (PSP), Credit Suisse, and Adam Street Partners. Moving forward, BC Partners is deploying capital through its BC Partners Fund XI vehicle, while the deal concurrently marks the first realization for BC Partners Fund X. Prevailing as the highest bidder in the sale process, CPPIB is making an initial capital contribution of approximately EUR 800 million. The transaction is strategically intended to allow BC Partners to realize additional value within the platform. Together with CPPIB, the sponsors plan to continuously take advantage of further potential growth opportunities operating within the medical technology space. During its prior holding period under BC Partners, CeramTec successfully executed robust operational improvements, strengthened its medtech operations, and significantly developed its product pipeline.

In the past, the company had already been the subject of several LBOs, notably led by Cinven in 2013 and Bc Partners in 2017. This succession of buyouts highlights the strong attractiveness of the company's business model.