German Chemical Firm CABB Sold

Tuesday, April 22, 2014 @ 11:04 AM gHale

German specialty chemical company CABB International just switched owners from Bridgepoint to Permira, as the European equity firm purchased the pesticides, cosmetics and food maker.

European private equity house Bridgepoint earned an internal rate of return (IRR) of 2.4 times its original investment, and CABB had an enterprise value of over $1.1 billion, one industry official said.

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In an effort to bulk up is portfolio, Permira seized the opportunity to add Sulzbach, Germany-based CABB. Permira already owns Arysta LifeScience, a developer of additives to enhance crop growth and combat diseases and bugs. Permira’s prior investments include cosmetic-additive maker Cognis, sold to BASF SE for $3.8 billion in 2010.

“CABB is perfectly positioned as a leading global supplier of fine chemicals, specialty chemicals and intermediates to a variety of growing global industries including the agrochemicals industry, which we know well,” said Torsten Vogt, co-head of Permira’s industrial team.

“In the past three years — under the ownership of Bridgepoint — CABB has made tremendous headway,” said Dr. Martin Wienkenhöver, CABB Group chief executive. “Today CABB is a well-known and trusted partner for a large number of blue chip companies in the agrochemical, chemical and pharmaceutical industry. Together with Bridgepoint, the management of CABB established a sustainable growth strategy and we are looking forward to continue with and accelerate our successful growth path with the support of Permira.”

CABB started up in 2003 through the reorganization of Clariant’s acetyls operations. The transaction should close in June.

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