Apollo Global acquires Belgian chemicals firm Taminco for €1.4 bn
17 Dec 2011
New York-based private equity firm Apollo Global Management yesterday acquired Belgian chemicals company Taminco Group Holdings from its peer CVC Capital Partners, for €1.1 billion ($1.4 billion).
Taminco, which was spun off from Belgian drug maker UCB in 2003, and acquired by London-based CVC for around €800 million in 2007, is reported to make more than twice its initial investment from the sale.
Ghent, Belgium-based Taminco is the world's only global integrated specialist alkylamine producer.
Alkylamines and their derivatives are key building blocks in a broad array of chemical products that have a wide range of applications.
Taminco operates manufacturing facilities worldwide, including one large plant each in Europe and the US, and smaller facilities in China and Brazil.
Taminco, whose main competitor is Germany's BASF SE, reported net income of €159 million on revenues of €715 million last year.
Apollo, which has $65 billion of assets under management, outbid its rival Bain Capital in the auction that was run by Bank of America, Merrill Lynch and Goldman Sachs, after Pamplona Capital Management dropped out of the bidding process.
The sale of Taminco comes on the same day as CVC teamed with Malaysia's Johor investment arm to bid $1.65 billion for KFC Holdings and QSR Brands, the owners of more than 900 fried chicken and Pizza Hut fast-food outlets in south-east Asia and India.