| CVC announces acquisition of Taminco for 0.8 billion EURO |
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4 July 2007 - CVC Capital Partners (“CVC”), a leading global private equity firm, today announced that funds managed and advised by CVC have reached an agreement to acquire Taminco, the world’s largest producer of alkylamines and derivatives. The transaction is subject to regulatory approval. Taminco produces alkylamines and derivatives, key building blocks for the pharmaceutical, agrochemical, animal feed and water treatment industries. Taminco was established in its current form following a carve-out from UCB in October 2003. From its origin as a chemical intermediates supplier, the company has developed its portfolio with products having strong niche specialty chemical positions. Taminco recently acquired the amines business of Air Products, nearly doubling the firms’ size and firmly positioning itself as the global market leader in methylamines, methylamine derivatives and higher amines. The company is headquartered in Ghent, Belgium and employs 850 people. Taminco currently has 8 production sites across the world: 2 in Europe (Belgium and Germany), 3 in the US, 1 in Brazil and 2 in China. Taminco expects to generate total sales of approximately €600 million in 2007. Taminco was sold by AlpInvest Partners in an auction process run by Merrill Lynch. CVC and the management team will acquire Taminco for an Enterprise Value of €0.8 billion. The transaction will be structured with a conventional split between equity and debt. The total equity contribution is expected to be around €200 million. CVC European Equity Partners IV will have a stake of around 75% in the company, whilst the remainder will be held by the existing management team. Debt facilities for the transaction have been provided by Merrill Lynch, Rabobank, Dresdner Kleinwort and Fortis Bank. Commenting on the acquisition, Geert Duyck, Partner of CVC Capital Partners said: “CVC is delighted to have reached an agreement to acquire Taminco together with its’ management. We look forward to working with the strong management team and supporting them in further successfully growing the business organically and through acquisitions in Europe, the US and Asia.” Pol Vanderhaeghen, Chief Executive of Taminco said: “This is an exciting opportunity for Taminco to work alongside an experienced global private equity firm with a proven track record in chemicals such as CVC, and it shows a clear path forward for the company. Our priorities and our business structure will remain unchanged. On the contrary, Taminco will be even more focused on globalizing its activities and integrating into new selected derivatives, whilst continuing to remain committed to the safe and responsible production of our quality products. It goes without saying that our achievements to date have been possible thanks to the support of our loyal customers, employees and suppliers who have supported us through the years.” CVC was advised by ABN Amro, Ernst & Young and Linklaters. Taminco and its shareholders were advised by Allen & Overy, Merrill Lynch and PwC.
About CVC Capital PartnersCVC Capital Partners is a leading international private equity and investment advisory firm. Founded in 1981 as Citicorp's European private equity arm, in 1993 CVC completed its own management buy-out and is independently owned by its management. CVC Asia Pacific was formed in 1999 as a joint venture between CVC Capital Partners and Citigroup, focusing on large-scale buy-outs in the region. Since 1996, CVC has raised and managed funds exceeding €18 billion and its fourth fund, CVC European Equity Partners IV, closed in July 2005 raising €6 billion. CVC is one of the few buyout groups structured for both the European mid and large buyout markets. It operates an integrated network of 18 advisory offices. CVC's operations have an experienced team of over 150 professionals. For further information, please contact:
CVC Capital Partners: Claire Ellis, Marketing & Communications Manager - T: + 44 20 7420 4200
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