Bain Capital LLC, Apollo Global Management LLC and Pamplona Capital Advisors Ltd. are in the final stages of bidding for CVC Capital Partner Ltd.’s amine-derivatives business, two people with knowledge of the situation said.
The three buyout funds took part in second-round bidding for CVC’s Taminco last week and a winner may be chosen as soon as this week, said the people, who declined to be identified because the sale process is private. CVC invited Bain, Apollo and Pamplona to revise their offers to see which can get closest to its 1.2 billion-euro ($1.61 billion) preferred price tag.
CVC is closing in on an exit from Taminco, which it bought for 800 million euros in 2007. It canceled a planned initial public offering in February 2010, citing market volatility, and failed to reach an agreement with synthetic rubber maker Lanxess AG this year. While the latest auction was geared toward private equity, Eastman Chemical Co. and another chemical company expressed initial interest in the asset, one of the people said.
Spokespeople for CVC, Bain, Pamplona and Apollo weren’t immediately available for comment.
Taminco Chief Executive Officer Laurent Lenoir has steered the Ghent, Belgium-based company toward higher-growth markets such as personal-care chemicals and water treatment, away from commoditized products. As part of an emerging-market drive, the company entered a joint venture with Mitsubishi Gas Chemical Co. to expand production in China. In the U.S., Taminco is expanding its methylamines operation as demand grows.
Taminco takes ammonia and blends it with alcohol to make amines that can be reacted with other chemicals to make derivatives with uses spanning pharmaceuticals, foods, crop chemicals and solvents.
Bank of America Corp. and Goldman Sachs Group Inc. are advising London-based CVC on the sale.