17 June 2013 10:22 [Source: ICIS news]
LONDON (ICIS)--Rockwood Holdings has entered into an agreement to sell its ceramics business CeramTec to European private equity firm Cinven for €1.49bn ($1.99bn), the US-based producer said over the weekend.
Rockwood said the deal was part of its strategy to become a more focused specialty chemical company. CeramTec, headquartered in Plochingen, Germany, is a global producer of high performance ceramics materials and products.
The deal, which is still subject to customary adjustments, is expected to close during the third quarter of 2013, the company said.
“Successful execution of this transaction at an attractive multiple will bring Rockwood one significant step closer to our strategic objective and commitment to become a more focused specialty chemical company, with a growth portfolio that best maximizes value and returns for our shareholders,” said Seifi Ghasemi, chairman and CEO.
“We expect to use the substantial net cash proceeds to support our balanced approach to debt reduction, return of capital to shareholders and re-investment in our complementary growth core businesses,” he added.
Cinven has offices in Guernsey, London, Frankfurt, Paris, Milan, Luxembourg and Hong Kong and a focus on six sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications, Rockwood said.
($1 = €0.75)
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