KPS Acquires Novacel in Strategic Push to Dominate Surface Protection

NEW YORK, NY – January 26, 2026 – In a significant move signaling a new era for the industrial surface protection market, private equity firm KPS Capital Partners, LP has announced its acquisition of a controlling stake in Novacel, a global leader in protective films and specialty tapes. The deal positions KPS to apply its renowned operational expertise to an already thriving manufacturer, while the seller, Compagnie Chargeurs Invest SA, retains a significant 25% stake, signaling a strong belief in the company's future.

The transaction, expected to close in the second quarter of 2026 pending customary approvals, will see Novacel operate as an independent company under KPS's majority ownership. While the financial terms were not officially disclosed in the KPS announcement, filings from Chargeurs indicate a transaction based on an enterprise value of approximately €230 million for Novacel.

A High-Value Asset in a Growing Market

The acquisition gives KPS control of a premier asset in the surface solutions sector. Headquartered in Deville, France, Novacel has established itself as a critical supplier to a diverse range of industries, including building and construction, automotive, home appliances, and general industrial manufacturing. The company's portfolio includes a full suite of solutions, from process and protection films to specialty tapes and application machinery, which are essential for protecting surfaces during manufacturing, transport, and installation.

Novacel’s strong market position is underpinned by robust financial performance. In 2024, the company posted revenues of €297.2 million, a 9.3% increase, while its recurring operating profit soared by an impressive 77.6% to €17.4 million. This growth was driven by a surge in volumes, particularly in Europe and rapidly expanding markets like India and Central Europe.

Based on the reported enterprise value of €230 million and its 2024 operating profit, the deal implies a valuation multiple of approximately 13.2 times its earnings. This figure sits at the premium end of typical M&A transactions in the specialty materials and chemicals sectors, where multiples have recently averaged between 11x and 13x. The valuation reflects Novacel’s market leadership, strong profitability, and significant growth potential, making it a prized asset for an industrially-focused investor like KPS.

KPS's Industrial Playbook Comes to Novacel

KPS Capital Partners is not a typical private equity owner. With $19.5 billion in assets under management, the firm has built a three-decade reputation for "making businesses better" by focusing on operational excellence rather than relying on financial leverage. KPS's strategy involves deep, hands-on engagement to structurally improve the competitiveness and profitability of its portfolio companies.

Pierre de Villeméjane, Partner and Co-Head of KPS Mid-Cap Investments, highlighted this approach in the announcement. "We are excited to acquire a controlling stake in Novacel, a differentiated surface protection solutions manufacturer," he stated. "Novacel's strong brand, renowned R&D capabilities and commitment to quality, combined with KPS' strategic, operational and financial resources, provide an ideal foundation for future growth."

KPS's playbook often involves implementing rigorous key performance indicators, optimizing supply chains, enhancing plant productivity, and fostering a culture of continuous improvement. The firm also has a strong track record of supporting "buy-and-build" strategies, where portfolio companies grow through strategic add-on acquisitions. This expertise will be crucial as Novacel navigates its next chapter.

Chargeurs' Strategic Reinvestment and M&A Ambitions

The structure of the deal is as noteworthy as the acquisition itself. By selling a controlling interest but reinvesting approximately €30 million to retain a 25% stake, Compagnie Chargeurs Invest is executing a sophisticated portfolio management strategy. The move allows Chargeurs to "crystallize Novacel's value" while participating in the future growth it anticipates under KPS's stewardship.

This decision aligns with Chargeurs' broader strategic shift. The Paris-based industrial and financial group has been evolving its portfolio to focus on what it calls "High Emotion Technologies"—businesses in sectors like culture, luxury, and education with unique intangible value. Divesting majority control of an industrial asset like Novacel frees up capital and management focus for this strategic pivot.

However, Chargeurs is not stepping away from the surface protection market entirely. Michaël Fribourg, Chairman and CEO of Chargeurs, emphasized the collaborative nature of the future partnership. "Chargeurs' investment alongside KPS highlights our belief in the Company's earnings growth and value creation potential under KPS' direction," he said. Fribourg explicitly pointed to a shared goal of "M&A build up in the surface protection market," suggesting an aggressive consolidation strategy may be on the horizon for Novacel.

Fueling Innovation for a Demanding Market

The partnership is poised to inject new energy into Novacel's already impressive innovation engine. The global surface protection market, projected to grow at a CAGR of over 9%, is driven by relentless demand from sectors like electronics, electric vehicles, and sustainable construction. To compete, manufacturers must continuously develop more advanced, durable, and eco-friendly products.

Novacel has already demonstrated its R&D prowess with its "Oxygen" line of sustainable films, which use less virgin plastic and have seen sales quadruple. With KPS's backing, the company is expected to accelerate such initiatives. KPS has a history of providing its portfolio companies with capital for R&D, new product development, and capacity expansion.

Novacel's CEO, Philippe Denoix, expressed optimism about this new phase. "KPS, with its demonstrated track record of manufacturing excellence is the ideal next owner of Novacel as it enters this next phase of growth as an independent company," he commented. "KPS' commitment to manufacturing excellence, operational improvement and innovation will enable us to build on Novacel's strong market position and deepen our partnerships with customers globally."

This infusion of capital and operational know-how could empower Novacel to expand its three R&D centers and six manufacturing facilities across France, Italy, and the United States, solidifying its technical leadership and responding faster to the evolving needs of its global customer base. The combination of KPS's strategic resources and Chargeurs' continued investment creates a powerful platform for Novacel to not only grow organically but also lead the consolidation of a fragmented yet vital industrial market.