3i sells KemFine to CABB
22 Jun 2011
CABB, a global fine and specialty chemicals company, and a portfolio company of European private equity firm Bridgepoint Capital Group, has acquired KemFine Group from 3i Private Equity for an undisclosed sum.
Headquartered in Helsinki, Finland, KemFine Group, which reported 2010 revenues of Euro 81 million, from custom manufacturing of of fine chemicals with a focus on intermediates and active ingredients mainly for the agrochemicals market. The company has long-term relationships and supply agreements with leading agrochemical companies, 3i said in a statement.
Uwe Kolb, partner responsible for Bridgepoint's investment activities in the German speaking countries, said, ''KemFine is a good fit with our recent acquisition of CABB and we are very pleased to be able to help the combined CABB and KemFine management teams to achieve their joint targets.''
CABB is one of the world's leading suppliers of chemical building blocks based on chlorine and acetic acid and is the world market leader in monochloroacetic acid (MCAA), an essential component used in a wide range of applications ranging from herbicides and personal care to the food industry. It is also a leading custom manufacturer for global agrochemical, food, pharma and chemical companies.
''CABB will further strengthen its resilient position in many of its markets through this acquisition," said Dr Martin Wienkenhöver, CABB chief executive.
The 3i group of funds originally invested in KemFine (formerly Kemira Fine Chemicals) in September 2004. During 3i's investment period, KemFine has strengthened its customer relationships through new contract wins with key customers, increased its revenue by 80 per cent and more than doubled its profit.
Its Kokkola production unit has continuously invested in its asset base and most recently in an environmentally friendly waste water treatment facility to improve KemFine's cost position.
Ulf Björkqvist, KemFine's CEO commented, ''3i's investment has enabled our business to establish a leading position in the market and create a well-diversified product portfolio. As we move into the next stage of our development with CABB, we will be focused on working in partnership to grow our joint business and sharing our combined customer and supplier base. This is a logical step for KemFine to further expand its field of expertise.''
