AAC in €650m specialty chemical exit

Bain Capital has agreed to buy specialty chemical distributor IMCD from AAC, which purchased the company from AlpInvest in 2005 for an undisclosed sum.

AAC Capital Partners has sold Dutch specialty chemical distributor IMCD to Bain Capital for a reported €650 million.

IMCD has its origins in the chemical distribution businesses of the Internatio-Müller conglomerate. The company provides sales, marketing and distribution services to suppliers and users of specialty chemicals including pharmaceutical and food ingredients, and operates in Europe, Australia, New Zealand, India and China.

AAC purchased IMCD from AlpInvest for an undisclosed sum in 2005 when AAC was still the private equity arm of Dutch banking group ABN AMRO Capital, which was renamed AAC Capital Partners in September of 2007.

Bain beat out rival firms Cinven Group and New Mountain Capital, both of which were involved in the auction of IMCD, according to the Wall Street Journal. Mezzanine financing for the deal was provided by Kohlberg Kravis Roberts.

“We thought Bain would be a very strong owner for a business like this, given their experience in the chemical sector,” Marc Ciancimino, head of KKR’s asset management business (KAM) in Europe, told PEO.  In March 2010, Bain purchased the Styron plastics division of Dow Chemical for roughly €1.2 billion.

AAC was advised by UBS, BCG and PriceWaterhouseCoopers.

The firm is currently investing from its €950 million fund, financed by Goldman Sachs and a consortium of investors including AlpInvest and the Canada Pension Plan Investment Board in November of 2008. As of 1 September, AAC was roughly 50 percent invested from the fund, partner Paul Southwell told PEO at the time.

AAC focuses on buyouts within the €50 million-€500 million range and has €1.7 billion in total funds under management. In September, the firm sold automotive repair company U-POL to Graphite Capital for €157 million, generating a 3.4x return in the process.

Bain Capital, co-investing with Advent International, in August acquired RBS WorldPay, the Royal Bank of Scotland’s card payment subsidiary business, for an enterprise value of up to €2.43 billion.