Cinven and Investcorp thwarted by OM Group

The private equity firms have reportedly been beaten to the precious metals and catalysts division of Degussa-Huls by an American chemical firm.

OM Group, the American speciality chemicals firm, is reportedly on the brink of a $1.5bn deal for Degussa Metals Catalysts Cerdec, the precious metals and catalysts division of Degussa-Huls, according to Venturedome, a website.

Private equity firms Cinven and Investcorp had come together to make a joint bid for the company. Johnson Matthey, a UK metals company, was also interested.

The boards of Degussa and its subsidiary meet today to discuss the sale. If it is approved, OM Group will pay about $1.5bn, which includes about $400m of assumed debt.

Degussa Metals Catalysts Cerdec has been up for sale for the last six months. Goldman Sachs and German bank Metzler arranged the auction.