US resins producer Reichhold Group and Italy’s Polynt have agreed to merge, creating a leading global composite resins and coatings company. The combined entity will be equally owned by private equity firms Black Diamond Capital Management and Investindustrial, which own Reichhold and Polynt respectively.

Reichhold’s president and CEO, John Gaither, said the deal would result in significant synergy opportunities and enable the combined businesses to be more competitive. The company was reported in March this year to be the favorite to take Polynt, ahead of specialized US funds including SK Capital and KPS Capital.

Polynt, which posted EBITDA of €92 million in 2015, manufactures and supplies specialties, intermediates and composites while Reichhold makes unsaturated polyester resins and supplies coating resins to various end-use markets.

Both companies have manufacturing operations throughout Europe, North and South America, and Asia; Reichhold also has operations in the Middle East. The transaction is expected to close in the second half of 2016, subject to regulatory approvals and other customary conditions.