CVC buys and builds with Lenzing

Zellulosefaser Beteiligungsgesellshaft mbH, which CVC has a majority shareholding in, has acquired Bank Austria’s stake in Lenzig Fibres.

Zellulosefaser Beteiligungsgesellshaft mbH, which CVC Capital Partners has a majority stake in, has acquired Bank Austria’s shareholding in Lenzing Fibres, a subsidiary of Austrian group Lenzing AG. The Lenzing stake is believed to be about 51 per cent of the company.

The shares are being sold at E90 per share, valuing the company as a whole at E270m. CVC will merge Lenzing with Acordis, the fibre maker that the private equity company bought into in 1999. The merged company will be one of the world’s largest cellulosic fibre producers with a turnover of E1.6bn.

In October, Bank Austria had said that it wanted to sell off its industrial interests and CVC was seen as a likely contender for the Lenzing business. In December however Bank Austria declared that it had decided against selling its stake in the company apparently because it had not been offered the right price. It said at the time that it was looking for E90 per share.

CVC will own approximately 54 per cent of Zellulosefaser Beteiligungsgesellshaft. 18 per cent of the shares will be held by Austrian co-investors with a further 18 per cent being held by Acordis. Management will hold the remaining 10 per cent.