UPDATE 1-CVC to buy chemical firm Taminco for $1.1 bln

Wed Jul 4, 2007 11:38am EDT

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LONDON, July 4 (Reuters) - Private equity firm CVC Capital Partners [CVC.UL] said on Wednesday it would buy Taminco, the world's largest producer of alkylamines and derivatives, for 800 million euros ($1.09 billion) from AlpInvest Partners.

Taminco, based in Ghent, Belgium, employs 850 people and has eight production sites around the world.

It expects to generate total sales of 600 million euros in 2007 from products used in the pharmaceutical, agrochemical, animal feed and water treatment industries.

CVC will own 75 percent of the company and management the other 25 percent. About a quarter of the purchase price will be paid in equity and the rest debt provided by Merrill Lynch, Rabobank, Dresdner Kleinwort and Fortis Bank.

Under new ownership, Taminco plans to retain the existing business structure but will accelerate global expansion plans both organically and using acquisitions.

Taminco was spun out of Belgian pharmaceutical group UCB UCBBt.BR in October 2003 and recently bought the amines business of Air Products (APD.N), nearly doubling its size.

Merrill advised AlpInvest while ABN AMRO advised CVC.

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