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(Updates with CVC’s retreat in third paragraph.)
Dec. 15 (Bloomberg) -- Apollo Global Management LLC, the private equity firm started by Leon Black, is near an agreement to buy CVC Capital Partners Ltd.’s amine-derivatives business for more than 1.1 billion euros ($1.43 billion), two people with knowledge of the situation said.
Apollo outbid Bain Capital LLC and Pamplona Capital Advisors Ltd. for the Taminco business, said the people, who declined to be identified before an official announcement. The purchase by the New York-based firm may be announced as soon as this week, the people said.
The agreement marks a prolonged exit by CVC from Taminco, which the London-based private equity firm bought for 800 million euros in 2007. The fund manager canceled a planned initial public offering in February 2010, citing market volatility, and failed to reach a sale agreement with synthetic rubber maker Lanxess AG this year. CVC is set to make more than twice its initial investment in the sale, the people said.
Officials for Apollo and CVC declined to comment. The Financial Times earlier today reported Apollo won the contest to acquire Taminco.
Taminco, based in Ghent, Belgium, takes ammonia and blends it with alcohol to make amines that can be reacted with other chemicals to make derivatives for pharmaceuticals, foods, crop chemicals and solvents. It’s a consolidated market, with BASF SE of Germany as the other major supplier of amine derivatives.
Chief Executive Officer Laurent Lenoir has steered the company toward higher-growth markets such as personal-care chemicals and water treatment and 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.
Apollo already owns two specialty chemical companies, now merged under the name Momentive, with an offering spanning formaldehyde and thermosetting resins.
Bank of America Corp. and Goldman Sachs Group Inc. are advising London-based CVC on the sale of Taminco.
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