Apollo acquires Taminco for €1.1bn

It is reported that CVC reaped 3x its initial investment on the sale, which was secured via an auction process managed by Goldman Sachs.

The new owner Apollo is now looking to further grow the company and continue the firm's strategy, which focuses on customer commitment, product innovation, integration and globalisation. The deal is subject to approval from antitrust authorities.

Among the bidders were Bain Capital, TPG and Pamplona Capital management. US-based chemical company Eastman also participated in the auction process.

According to media reports, CVC attempted to divest the business in 2010 and also earlier this year. CVC's original plan to carry out an IPO was hampered by the European sovereign debt crisis. In summer 2011, CVC was negotiating with chemical business Lanxess about a possible sale but the deal fell through.

Debt
Details of leverage for this transaction have not yet been disclosed.

Previous funding
CVC acquired a majority stake in Taminco in August 2007 in an €800m auction. The chemical specialist has been in the hands of private equity before and was acquired by Netherlands-based AlpInvest Partners in 2003 for €113m.

Company
Ghent-based Taminco is a producer of chemicals used for crop protection, animal feeds, water treatment and drugs.

In 2010, the company generated a turnover of €715m and an EBITDA of €159m representing an increase of 14% compared to 2009.

People
Steven Buyse is senior managing director at CVC and Scott Kleinman is lead partner of Apollo's private equity division.

Advisers
Vendor - Goldman Sachs (Corporate finance); Bank of America Merrill Lynch (Corporate finance); Allen & Overy (Legal); Ernst & Young (Financial due diligence); Arthur D Little (Commerical due diligence); URS (Environmental due diligence).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Benelux
• Buyouts
• Exits
• Belgium
• CVC Capital Partners
• Apollo Management