Apollo exits Taminco in $2.8bn deal

Taminco will be acquired by Eastman Chemical Company

Global private equity firm Apollo Global Management is selling Taminco Corporation, the largest producer of alkylamines and alkylamine derivatives to Eastman Chemical Corporation for $2.8 billion. The deal includes approximately $1 billion of debt.

Apollo acquired the company in 2011 from CVC Capital partners for $1.4 billion. Apollo outbid Bain and Pamplona Capital for Taminco in the original deal.

Apollo was unavailable for comment on the transaction at press time.

The merger agreement includes a 30-day “go-shop” period led by Morgan Stanley, Taminco’s financial advisor on the sale. If nothing emerges from the go-shop period the transaction with Eastman is expected to close in the fourth quarter of this year.

Eastman said the deal would allow the company to bolster its offerings in the food, feed and agriculture industries.

“We believe this transaction marks the beginning of an exciting new chapter for Taminco, our employees, customers and the communities we serve, while providing immediate value to our shareholders at a premium to our share price,” said Laurent Lenoir, chief executive officer of Taminco in a statement.

Apollo is currently in market with two funds raising $1.5 billion for its Credit Opportunity Fund III through the end of August, according to Private Equity International’s research and analytics division. The firm also beat its $700 million target for its Financial Credit Investment II fund which closed on $813 million in July.