SK Capital Continues to Invest in Archroma

New Investment Aimed to Support the Company’s Growth and Potential
Industry Consolidation

NEW YORK & BASEL, Switzerland–(BUSINESS WIRE)–SK Capital Partners, a private investment firm with a disciplined focus
on the specialty materials, chemicals and pharmaceutical sectors,
announced today that it is reinvesting in Archroma in support of the
Company’s ongoing initiatives to drive innovation, growth and
operational efficiencies and to pursue strategic investments in both
organic growth and industry consolidation.

Initially acquired by SK Capital in 2013, Archroma is a global,
diversified provider of specialty chemicals serving the branded and
performance textiles, packaging and paper, and coatings, adhesives and
sealants end markets. The Company is headquartered in Switzerland and
operates a highly integrated, customer-focused platform that delivers
products in over 100 countries.

Under SK Capital’s ownership, the Company has revitalized its
performance, having carved out three non-core divisions and establishing
them as an independent and integrated company, installing an experienced
and talented management team, and facilitating a cultural transformation
that has resulted in Archroma becoming a leading participant in their
sectors. The Company has generated increased profitability and cash flow
by improving capacity utilization, creating an integrated supply chain
to simplify product flow, reducing corporate complexity by de-layering
organizational structures, and improving key business processes.

Barry Siadat, Managing Director of SK Capital, said, “We are excited to
be making this new investment in our existing portfolio company,
Archroma. We believe there is an opportunity going forward to deliver
new product innovations by capitalizing on significant investments made
in new technologies that improve sustainability, enhance performance and
create new features and benefits coveted by our customers in the branded
textiles, packaging and coatings and adhesives markets.”

Aaron Davenport, Managing Director of SK Capital added, “We believe
Archroma is in a strong position to be a leading market consolidator in
these fragmented sectors by executing on a number of attractive
acquisition opportunities that can leverage the Company’s existing
platform and technology base. Our new equity investment and
recapitalized balance sheet will provide the financial and operational
flexibility needed to continue building Archroma’s competitiveness and
market position.”

As part of the investment, Archroma completed an offering of its credit
facilities including a multi-currency revolving credit facility, a
facility for capital expenditures, and term loans. HSBC Bank plc and
Bank of America Merrill Lynch International acted as global
coordinators, bookrunners and mandated Lead Arrangers. Credit Suisse AG,
UBS AG and ICICI Bank UK plc acted as mandated lead arrangers.

Kirkland & Ellis served as legal counsel to SK Capital. The Valence
Group provided SK Capital with a fairness opinion associated with its
reinvestment, and Evercore and HSBC provided SK Capital and Archroma
with M&A advisory services.

ABOUT SK CAPITAL
SK Capital is a private investment firm
focused on the specialty materials, chemicals and pharmaceutical
sectors. The firm builds strong and growing businesses that generate
substantial long-term value for its investors. SK Capital utilizes its
industry, operating and investment experience to identify opportunities
to transform businesses into higher performing companies with improved
strategic positioning, growth, profitability and risk profiles. The firm
currently has approximately $1.9 billion of assets under management and
its portfolio companies generate revenues of approximately $5 billion
annually and employ approximately 8,700 people.

For more information, please visit www.skcapitalpartners.com

ABOUT ARCHROMA
Archroma is a global color and specialty
chemicals company committed to innovation, world-class quality
standards, high service levels, cost efficiency and sustainability.
Archroma is headquartered in Reinach near Basel, Switzerland, and
operates with approximately 3,000 employees over 35 countries. Through
its three businesses – Brand & Performance Textile Specialties,
Packaging & Paper Specialties, and Coatings, Adhesives & Sealants –
Archroma delivers specialized performance and color solutions to meet
customer needs in their local markets.

Archroma is passionate about delivering leading and innovative
solutions, enhancing people’s lives and respecting the planet. The
company is committed to challenging the status quo in the deep belief
that it can make its industry more sustainable; an approach reflected in
its innovations, world-class quality standards, high service levels and
cost-efficiency.

More information about Archroma can be found at www.archroma.com.

Contacts

For Archroma:
Muriel Werlé, +41 61 716 3375 or +41 79 536 9117
[email protected]
or
For
SK Capital:
Philip Nunes, 617-391-0792
[email protected]