Cinven buys BP Amoco units

Cinven, the European private equity provider, has completed the purchase of the specialty chemicals operations of BP Amoco Plc.

Cinven is buying the group’s metallurgical chemicals operation including Foseco as well as the releasants chemicals business (Chem-Trend). The units’ combined turnover in 2000 was £425m.

The deal has been on the cards for some time. The disposed assets are part of Burmah Castrol, which BP Amoco bought in 2000 for approximately £3bn saying it would sell off some of its non-core businesses including Foseco in order to have Burmah concentrate mainly on lubricants. Foseco makes chemical products for the steel making and foundry industries.

Total consideration for the deal, which is subject to regulatory approval, is £204m. Cinven is investing equity capital alongside senior management. JP Morgan and The Royal Bank of Scotland have been mandated to provide debt financing.

Jamie Pike, a former chief executive of Burmah Castrol Chemicals, will run Foseco. Cinven will also appoint a chairman to the company’s board.