CVC Links with DLJ for GBP650 Million Buy

BTR has sold Formica Corporation, together with its Australian Building Products businesses to CVC Capital Partners for around GBP650 million (ecu 997 million) as part of the group’s continuing drive to sell off its non-engineering subsidiaries.

The acquired businesses, which employ over 8,100 staff worldwide, have combined sales of approximately GBP800 million. Both Formica and the Australian group, renamed Amatek, have seen profits decline in recent years; the combined figure for 1997 was some GBP65 million. The individual acquisition considerations for the two businesses have not been disclosed.

This deal is CVC’s largest to date by a considerable margin. It was structured with equity from Donaldson Lufkin & Jenrette Merchant Banking Partners II and Citicorp Venture Capital, as well as from CVC-managed funds. Debt was arranged by Bankers Trust, Donaldson Lufkin & Jenrette Securities Corp. Credit Suisse First Boston and Societe Generale (Australia).

CVC said the acquired companies will provide a platform for further acquisitions, as well as having considerable potential for further growth in their own right. One $200 million (ecu 182 million) buy for the new group has already been lined up.