Rockwood Holdings, Inc. (NYSE: ROC) announced today it entered into a definitive agreement to sell CeramTec, its advanced ceramics business to Cinven, a European private equity firm for EUR 1.49 billion gross proceeds (~USD $1.98 billion), subject to customary adjustments.
Cinven has obtained fully committed financing for this transaction, which is expected to close during the third quarter 2013 following receipt of appropriate regulatory approvals, including the EU Competition Clearance Authority.
“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 Chief Executive Officer. “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.
“I want to give my appreciation and thanks to our CeramTec management team and employees, who over the last nine years drove strong financial performance and growth that has created significant value for our shareholders. We are pleased to have entered into the transaction with Cinven as they are well positioned to continue to advance CeramTec’s growth prospects,” added Mr. Ghasemi.
Lazard acted as Rockwood’s financial advisor and Willkie Farr & Gallagher LLP as legal advisor.
CeramTec, headquartered in Plochingen, Germany, is a leading global producer of high performance advanced ceramics materials and products. With approximately 3,000 employees and 18 facilities globally, it serves four principal end-markets: (1) medical; (2) electronics; (3) industrial; and (4) automotive. CeramTec has strong market positions in various niche markets such as medical products, cutting tools and mechanical applications.
Cinven is a leading European private equity firm, founded in 1977, with 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 (TMT).