Funds advised by CVC Capital Partners ("CVC") today announced the sale of their majority stake in Taminco, the world's largest producer of alkylamines and derivatives to affiliates of Apollo Global Management ("Apollo"). Apollo, a global private equity firm, will support Taminco's continued growth, based on the company's strategy which is focused on customer commitment, product innovation, integration and globalization. Closing of the transaction is subject to antitrust approval and is expected to take place in the first half of 2012.
Taminco, The Amine Company, is the world's only global independent and 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 makes as such a valuable contribution to diverse markets including Agchem, Personal & Home Care, Food and Nutrition, Energy/Oil & Gas, Pharmaceuticals and Water Treatment.
Under CVC's ownership sales increased from €625 million for the year ended 31st December, 2007 to €715 million for the year ended 31st December, 2010 and EBITDA in that period from €110 million to €159 million. In addition, under CVC's ownership Taminco has implemented a fully integrated manufacturing strategy, made significant investments in its U.S. operations and has globalised its business through a joint venture in China with Mitsubishi Gas Chemical Company.
Steven Buyse, Senior Managing Director of CVC, commented: "Taminco is a high quality business with robust margins and healthy growth prospects. We are delighted to have been actively involved since 2007 in the evolution of Taminco to a fully integrated global player in the specialty chemicals market. Realizing a successful exit for CVC under current market conditions is a great result for CVC and a testament to the strength of the Taminco business model and the quality of its management and employees."
Laurent Lenoir, Chief Executive Officer of Taminco said: "We enjoyed working with CVC and greatly appreciated their support for our international expansion and investment strategy, including our most recent joint venture in China and the recently announced DMAPA unit in our Saint Gabriel (Louisiana, US) plant. With Apollo we welcome a new investor with particular expertise in investing in chemicals companies, such as Momentive Performance Materials Holdings. Apollo is fully committed to endorse management's plans and to continue the growth story while preserving our unique corporate culture."
CVC and Taminco were advised by Bank of America Merrill Lynch, Goldman Sachs, Allen & Overy, Ernst & Young, Arthur D Little and URS.