Lone Star Funds Builds Polymer Giant

Lone Star Funds is orchestrating a significant consolidation within the engineered materials sector, simultaneously acquiring RadiciGroup’s high-performance polymers and specialty chemicals divisions and finalizing agreements for DOMO Engineered Materials. This dual transaction is set to forge a formidable, independent global compounder, merging two established entities into a single, scaled enterprise.

The strategic combination aims to create a robust platform with a comprehensive product suite and expanded global footprint. By integrating these complementary businesses, Lone Star Funds anticipates enhanced capabilities to serve a wide array of critical industries, including automotive, construction, and consumer goods. The move is designed to bolster innovation, refine customer solutions, and secure long-term expansion trajectories for the newly formed entity.

This ambitious undertaking by Lone Star Funds, advised by its Fund XII, underscores a strategy focused on value creation through complex, differentiated investments. The acquisition of RadiciGroup’s polymer and chemical units, alongside the impending acquisition of DOMO Engineered Materials, a division of DOMO Group, represents a substantial commitment to the advanced materials market. This sector, crucial for lightweighting and performance enhancements across manufacturing, is experiencing steady growth, driven by demand for sustainable and high-performance solutions.

The consolidated entity will benefit from the established reputations and product lines of recognized brands, including RadiciGroup, DOMO, and the prominent TECHNYL® brand. This integration is expected to preserve vital industrial expertise and employment across various operational geographies. The combined business is positioned to leverage its enhanced scale and resources to accelerate research and development, ensuring continued delivery of high-quality, reliable, and technically advanced materials to a global clientele.

Jochen Fabritius has been appointed Chief Executive Officer of the combined organization. With over 25 years of industry and consulting experience, and a decade leading companies within the Lone Star portfolio, Fabritius is tasked with steering the newly formed powerhouse. His leadership is expected to be instrumental in integrating operations and driving the strategic vision forward.

Donald Quintin, Chief Executive Officer of Lone Star, highlighted the transformational nature of the deal, stating, “Bringing together two leading and highly complementary businesses simultaneously creates a scaled platform with significant industrial and technological capabilities. We believe this combination will not only strengthen the competitive positioning of the business globally, but also provide the resources and stability needed to drive innovation, support customers and protect industrial know-how and employment.” The completion of the RadiciGroup transaction follows an earlier announcement in February 2025, marking a significant milestone in Lone Star’s investment strategy.

The global engineered materials market, particularly for polyamides, is a critical component of modern manufacturing. With increasing regulatory pressures and consumer demand for sustainability, companies like the one being formed by Lone Star Funds are pivotal. The inclusion of recycled and bio-based solutions, as highlighted by both RadiciGroup and DOMO Engineered Materials' offerings like TECHNYL® 4EARTH, signals a strong commitment to circular economy principles and environmental responsibility, aligning with broader industry trends.