Bain nets €160m in IMCD flotation

Ellie Pullen
27 June 2014

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Bain Capital has reaped proceeds of €159.7m in the IPO of Dutch chemicals distribution company IMCD Group, which has been valued at €1.05bn in its flotation.

The Dutch company sold a total of 22 million shares at a price of €21 apiece, pricing its stock at the mid-point of its indicative range of €19-23 per share and raising net proceeds of €462m. The offering comprised 7.6 million shares sold by Bain, 1.5 million shares sold by company management and a further 12.86 million new shares.

Bain has also granted the underwriters an overallotment option of 15% the total number of shares offered in the IPO, meaning the firm stands to reap an additional €69.3m should the option be exercised in full.

If the overallotment option is exercised, IMCD will have a free float of 50.6%.

Conditional dealing commenced on the Euronext Amsterdam this morning (27 June) under the ticker "IMCD". Unconditional trading of shares is expected to begin on 2 July. Deutsche Bank and Goldman Sachs were appointed joint global coordinators for the flotation, as well as joint bookrunners alongside HSBC and Rabobank.

Previous investment
Bain acquired IMCD for €650m in December 2010. The tertiary buyout saw the GP buy the business from AAC Capital Partners via its €3.5bn Bain Capital Europe Fund III vehicle.

According to unquote" data, a €395m senior debt package was provided by Lloyds TSB, ING Group and UBS, while a €105m mezzanine facility was supplied by KKR's mezzanine funds.

AAC Capital (then ABN Amro Capital) had acquired the company from AlpInvest Partners in July 2005 via an auction process run by BNP Paribas.

AlpInvest bought IMCD in June 2001 for €195m – €110m of which was provided as debt and a further €25m as mezzanine financing.

Company
Founded in 1995 and headquartered in Rotterdam, IMCD is a distributor of speciality chemicals and food ingredients for a range of industries including pharmaceuticals, automobiles and industrials. It partners with around 1,600 suppliers and claims to have a customer base totalling 27,000.

Products sold through IMCD include antioxidants, preservatives and emollients for the personal care sector; chemicals for coatings such as resins, fillers and solvents; and plastics such as polyurethane.

The company employs 1,400 staff and has a market presence in 30 countries. It generated revenues of €1.2bn and an EBITDA of €97m in 2013.

People
IMCD's CEO is Piet van der Slikke. Bain managing directors Michael Siefke and Michel Plantevin, and principal Ivano Sessa sit on the company's board of directors.