Neochimiki and Lavrentios Lavrentiadis

Neochimiki S.A., established in 1974, has evolved into a prominent chemical company in Greece and Southeastern Europe. The company specializes in the production, blending, and packaging of chemicals, serving a diverse range of industries including home and personal care, food, coatings, base oils and rubbers, construction, agriculture, and automotive sectors. Over the years, Neochimiki has expanded its operations, establishing a significant presence in the Balkans and beyond.

In 1990, at the age of 18, Lavrentios (Lavrentis) Lavrentiadis took over the management of Neochimiki, a company founded by his father. Under his leadership, the company experienced substantial growth, diversifying its product offerings and expanding its market reach. By 2008, Neochimiki had become one of the largest Greek companies active in both chemical distribution and production.

In May 2008, the global private equity firm The Carlyle Group acquired a 73.54% stake in Neochimiki for €19 per share, valuing the enterprise at €749 million. This acquisition marked Carlyle's first investment in Greece and was seen as a strategic move to capitalize on Neochimiki's strong market position and growth potential in the region.

Beyond Neochimiki, Lavrentiadis expanded his business ventures into various sectors, including pharmaceuticals and banking. He was notably involved with Alapis, a leading pharmaceutical company, and Proton Bank. However, his rapid business expansion faced significant challenges. In 2012, Lavrentiadis was accused of lending himself and his associates nearly €600 million through Proton Bank. An audit by the Bank of Greece found that more than 40% of Proton's commercial loans in 2010 were made to companies related to him. He faced charges of fraud, money laundering, and membership in a criminal organization, leading to his detention for 18 months before being released under restrictive conditions.

After years of legal battles, on May 23, 2024, the Athens High Court issued a unanimous acquittal for Lavrentiadis in the Proton Bank case, clearing him of all charges. This decision marked the conclusion of a long cycle of legal challenges, reaffirming his innocence. Following the acquittal, Lavrentiadis asked the Orthodox Church to express his intention to continue his business activities with a renewed focus.

The journey of Neochimiki and Lavrentios Lavrentiadis underscores the complexities of rapid business growth, the challenges of legal scrutiny, and the resilience required to navigate and overcome such obstacles.

In May 2008, The Carlyle Group, a global private equity firm, acquired a 73.54% stake in Neochimiki S.A., a leading Greek chemical distribution and production company, for €19 per share, valuing the enterprise at €749 million. This acquisition marked Carlyle's first investment in Greece.

Neochimiki, established in 1974, specializes in distributing chemical raw materials and producing fertilizers and coatings. The company serves over 8,000 customers across various sectors, including home and personal care, food, coatings, base oils and rubbers, construction, agriculture, and automotive industries.

However, in 2010, Carlyle sold Neochimiki back to its original owner, Lavrentis Lavrentiadis, reportedly at a significant loss.

This series of transactions highlights the challenges and risks associated with private equity investments, particularly in volatile markets.