Inspec sells Belgian business to MBO for £84m

14 April 1998 12:59  [Source: ICIS news]

LONDON (CNI)--UK speciality and fine chemicals group Inspec said Tuesday it has agreed to sell its Belgian business to Ineos, a newly-formed management buy-out (MBO) company led by Inspec managing director James Ratcliffe, for £84m ($140m).

Based at Antwerp, the business produces commodity chemicals ethylene oxide (EO) and glycol, and speciality chemicals - primarily ethylideneorbornene (ENB). It also provides a wide range of operations and services to third parties which own or operate plants on its site.

The sale is conditional on approval of Inspec shareholders and upon Ineos raising a substantial proportion of the £84m from the high yield bond market.

On completion of the deal, Ratcliffe will resign from the Inspec board. Inspec said a successor would be appointed in due course and until then chairman John Hollowood and divisional managing directors will share Ratcliffe's duties.

Under the sale agreement, Ineos will provide under a long-term contract all Inspec's EO requirements at competitive market rates. The deal allows Inspec to share in any profits if Ineos sells all or certain parts of the Antwerp business within two years. Inspec has also negotiated a profit-sharing arrangement with Ineos.

By: Neil Sinclair
+44 20 8652 3214

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