Ardian has agreed to acquire Italmatch Chemicals from Mandarin Capital Partners and the Malacalza Group. A producer of specialty chemicals, Italmatch makes products varying from lubricant oil additives to water treatments and phosphorus derivatives. It has two joint ventures in China that produce plastic additives and flame retardants for the electronics sector. Mandarin Capital Partners, which holds a 67.6% stake, invested in the company in late 2010, along with Malacalza Group. Reportedly, Mandarin's exit will yield the firm a 40% IRR for its first fund, through which it made the investment.