A laboratory mishap marked the beginning of a world-leading player in advanced materials for extreme environments. From materials for spacecraft to advanced transportation and brake pads for McLaren sports cars, their list of low-volume products crafted to meet customer-specific demands is extensive. We assisted the company in finding a new owner with the potential to elevate the business to the next level. This led to the acquisition of Diamorph AB by the English private equity firm Epiris.
Diamorph is a Swedish innovation hub with a portfolio of material solutions designed for extreme environments and specific customer requirements. Founded by the entrepreneurial duo Ashkan Pouya and Saeid Esmaeilzadeh, the company originated from Esmaeilzadeh's accidental creation of an unusually weldable composite material, as hard as diamond, in his laboratory. Starting with small patents, it evolved into a prominent industrial group.
It is especially gratifying that those who supported and believed in an innovation are now seeing returns on their investment.
After a meticulous process, the British private equity firm Epiris was chosen as the final buyer. Epiris, based in London, has extensive experience with industrial companies, aiming to create conditions for continued growth in the business. The sale was successful, and the company has quadrupled its turnover since then.
Returns for those who believed in innovation
The sale of Diamorph was a good deal for the 250 individuals who had invested in the company.
"For us at Clearwater, it was incredibly important to communicate with these individuals during the sales process. It is especially gratifying that those who supported and believed in an innovation are now seeing returns on their investment", says Oscar Coster.
The company has a global customer base with sales in over 60 countries. During the sales process, the company attracted significant interest from both financial buyers and industry players, and the final purchase price exceeded the owners' expectations.
Unique offering
Internationally recognised, the company specialised in providing materials for demanding conditions. The market lacked comprehensive suppliers for complex environments, and many commercial materials could not meet the tough requirements in various applications. The company operates in sectors with high entry barriers, combining extreme product needs such as stress resistance, heat resistance, or acid resistance with stringent regulatory demands.
Through acquisitions and the development of an impressive portfolio of different materials, Diamorph became an expert in tailoring and solving complex material challenges. The company focuses on deep niches within various end markets, including fire protection, automotive, railway, industrial, oil and gas, and the marine sector.
A natural next step
After 15 years with the founders at the helm, the company had reached its limits with the existing ownership structure, and it was time to hand over to a player capable of taking a holistic approach.
Diamorph was owned by Investment AB Latour, the Serendipity Group, the founders' investment management and technology service company, and a large number of Swedish angel investors.
Having previously acquired an established 100-year-old company in Manchester and moved a significant part of its operations there, the natural step was to look towards England, and we facilitated the international deal.
Clearwater advisers
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