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CVC completes Chinese MBO

CVC Asia Pacific has reportedly paid $100m in the management buyout of Chinese flooring products company Plantation Timber Products.

CVC Asia Pacific has backed the management buyout of Plantation Timber Products, a Chinese manufacturer of fibre panels and laminated flooring.
 
No financial terms were disclosed for the deal, in which CVC acquired the business from New Zealand wood products company Carter Holt Harvey. However, reports in the Chinese press suggest a transaction price of approximately $100 million (€78.5 million).
 
CVC was advised by ABN AMRO and Clifford Chance, with debt financing for the transaction from ABN AMRO and Royal Bank of Scotland.
 
Founded in 1997, Plantation Timber Products has 355,000 cubic metres of medium density fibre panel production capacity with plants in Hubei and Sichuan provinces. The company has more than 1,700 employees in China and sales of approximately $100 million.
 
An earlier attempt at a deal in China this year ended in failure for CVC. The firm’s bid to become the largest shareholder in Chinese paper maker Shandong Chenming Paper was derailed in July when talks broke down.