Private equity firm Kohlberg Kravis Roberts & Co. has led a 105 million euro ($146.5 million) mezzanine financing as part of Bain Capital Partners’ acquisition of IMCD Group. Netherlands-based IMCD provides marketing, sales and distribution of specialty chemicals, food and pharmaceutical ingredients.
Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”) today announced that affiliate investment vehicles and accounts advised by KKR Asset Management LLC (“KAM”) led the EUR105 million mezzanine financing, which included leading credit investor Sankaty, as part of the acquisition of IMCD Group (“IMCD”) by Bain Capital Partners LLC. Headquartered in the Netherlands, IMCD is a leader in the marketing, sales and distribution of specialty chemicals, and food and pharmaceutical ingredients, with offices and warehouses in 34 countries in Europe, Africa and Australia/Asia.
“We are delighted to support Bain Capital in the acquisition of IMCD. In addition to having a highly cash generative business model and an extremely diversified customer base and product range, IMCD has a management team with a proven ability to operate a business throughout all types of economic conditions. Today, the business is at an exciting point in its evolution, and we look forward to working with Bain Capital and the company as they continue to grow the business,” Frederick M. Goltz, head of KKR’s mezzanine business, said. “We believe this transaction clearly reflects how mezzanine financing can support acquisitions by offering certainty of funding from a long-term investor with deep knowledge of a specific company and industry,” Goltz said.
The transaction, which closed on February 28, 2011, represents the seventh transaction in the last twelve months in which affiliate investment vehicles and accounts advised by KAM provided mezzanine financing. Across these transactions, KAM has participated in over EUR1 billion of mezzanine financings and five of the most recent deals involved European companies.
This is the second transaction in which affiliate investment vehicles and accounts advised by KAM provided mezzanine debt financing to support an acquisition by Bain Capital in Europe.
Launched by KKR in 2004, KAM invests on behalf of its managed funds, clients and accounts across the corporate credit spectrum, including secured credit, bank loans and high yield securities as well as in equities and alternative assets such as mezzanine financing, distressed investing and structured finance. With more than 100 employees, including 45 investment professionals, KAM’s investment teams are closely aligned with KKR’s wealth of private equity investment and industry resources. As of December 31, 2010, KAM has $14.8 billion in assets under management, of which $7.8 billion is fee-paying.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $61.0 billion in assets under management as of December 31, 2010. With 14 offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platforms. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR’s website at www.kkr.com.