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CVC wants to buy and build with Lenzing bid

Reports suggest that CVC Capital Partners is likely to acquire Bank Austria’s shareholding in Lenzing Fibres having increased its offer to E90 per share.

Private equity firm CVC Capital Partners looks set to acquire a 51 per cent shareholding in Lenzing Fibres, a subsidiary of Austrian group Lenzing AG.

eFinancial News cites a source close to the deal who said that Bank Austria will agree the sale on Wednesday. It is believed that the sale values the company at E90 per share, and the company as a whole at E270m. CVC is expected to merge Lenzing with Acordis, the fibre maker that CVC bought in 1999.

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 financed the Acordis buyout with a E550m senior loan arranged by Chase. The private equity firm is likely to take out a larger debt package to finance the purchase of Lenzing and refinance the Acordis loan.