CVC Said to Resurrect Taminco Sale With Pitch to Buyout Firms
CVC Capital Partners Ltd. is making a renewed push to sell its Taminco amine-derivatives operation after failing to agree on a deal with Lanxess AG (LXS), four people familiar with the situation said.
Private equity firms such as Advent International Corp. and Apollo Global Management LLC are being sent information about Taminco to garner bids, said three of the people, who declined to be identified because the sale process is private.
Negotiations with synthetic rubber maker Lanxess, which offered about 1 billion euros ($1.4 billion) for the business, failed earlier this year, and equity market volatility is blocking a plan for an initial public offering of Taminco. CVC’s efforts to revive the sale is coinciding with increased caution among chemical executives to make deals and stifled access to credit that buyout firms need to make a purchase.
Taminco, which makes amines used in fertilizer, food and consumer goods, may draw interest from Asian companies seeking global expansion, the people said. Taminco, with sales of 715 million euros last year, has three of its eight production sites in China.
Bank of America Merrill Lynch and Goldman Sachs Group Inc. are advising CVC on the sale.
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