CVC Reconsiders Sale of Taminco, C1000


CVC Capital Partners could reconsider its plan to sell Belgian chemicals company Taminco and Dutch supermarket chain C1000 and opt to recapitalize them instead, Reuters reported Monday. Both companies have been put up for sale by CVC and attracted interest from trade buyers and buyout houses after first round bids were due in October.

(Reuters) – CVC Capital Partners could reconsider its plan to sell Belgian chemicals company Taminco and Dutch supermarket chain C1000 and opt to recapitalise them instead, bankers said.

Both companies have been put up for sale by CVC and attracted interest from trade buyers and buyout houses after first round bids were due in October.

Second round bids were due in November and Goldman Sachs is running the sales process for both companies, the bankers said.

However, if CVC does not achieve a decent price for either asset in volatile economic conditions, it will hold off a sale and recapitalise the companies instead, the bankers said.

“Both companies are strong credits so if a good price isn’t achieved it makes sense to have a valid back up option by refinancing until market conditions improve,” one banker said.

CVC tried to list Taminco on the stock exchange in January 2010 but withdrew the IPO after failing to reach an indicated price range of up to 420 million euros ($595.4 million) for the business, due to unfavourable market conditions.

In July German rubber chemicals group Lanxess walked away from talks with CVC to buy Taminco after failing to agree a price. Lanxess bid around 1 billion euros. [ID: nLDE76O1B7]

Ghent-based Taminco, which makes chemical building blocks for crop protection, animal feeds, water treatment and drugs, was spun off from Belgian drugmaker UCB in 2003 and was bought by CVC in 2007 for 800 million euros.

CVC bought C1000, formerly known as Schuitema, in 2008 from Ahold for 515 million euros. ABN Amro, ING Bank, Rabobank and Royal Bank of Scotland arranged the 500 million euro debt financing for the deal in June 2008 according to Thomson Reuters LPC data.

The group has EBITDA of around 130 million euros, bankers told LPC previously.

CVC declined to comment.

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more? Get your FREE trial to Buyouts! Or subscribe now!