GERMANY - BC Partners-backed Brenntag on track for IPO

The float is one of several planned by private equity-backed businesses in the coming months, as sponsors seek to take advantage of a prolonged stock market rally to achieve lucrative exits.

Earlier today the first IPO by a private equity-backed business in 2009 was concluded, when Hellman & Friedman-backed fund management business Gartmore began trading on the London Stock Exchange. However, the float should sound a note of caution to those expecting to make big returns from public markets, as the opening share price had to be dropped from its target price range of 250-330 pence to 220 pence following a tepid reaction from institutional investors.

As unquote" reported in November, Brenntag has restructured its EUR 2.5bn debt to prepare the company for ithe planned IPO. The new terms give the lenders increased interest margins, while allowing Brenntag to use the profits from the IPO to repay subordinated debt before the senior tranches.

Brenntag supplies industrial and speciality chemicals to industries in the manufacturing sector. The company is based in Mühlheim an der Ruhr and posted sales of EUR 7.4bn in 2008.

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