AXA Private Equity acquires SF-Chem Frankfurt 29 August 2007

AXA Private Equity has acquired with its portfolio company CABB GmbH, Sulzbach (Germany) 100% of SF-Chem AG, Pratteln (Switzerland), a leading producer of sulfur and chlorine based specialty intermediates for the pharmaceutical, agrochemical and specialty chemicals industries.  CABB GmbH has been a portfolio company of AXA Private Equity since January 2007.

CABB, headquartered in Sulzbach/Taunus, Germany, produces, among others, monochloroacetic acid (MCAA) and a range of specialty intermediates that find application in the PVC, pharmaceutical, agrochemical and personal care industries. The company is a global leader in the production of MCAA and has a strong presence in Europe, North America and South America. CABB operates in Germany with two production sites (Gersthofen and Knapsack) and has approx. 300 employees.

SF-Chem AG is headquartered in Pratteln, Switzerland, and is a leading producer of sulfur- and chlorine-based specialty intermediates for the pharmaceutical, agrochemical and specialty chemicals industries.  SF-Chem operates on one site in Switzerland (Pratteln, near Basel) and has approx. 360 employees.  The current management team will continue to run SF-Chem after the merger with CABB and will acquire a shareholding in the merged company.

SF-Chem originated in 1917 as a joint production unit of the major chemical companies based in and around Basel. In 2004, the company was sold by Syngenta and Clariant to a new management team led by CEO Ueli Roost. SF-Chem was successfully re-positioned as an independent and market oriented company.

The combination of CABB and SF-Chem creates a strengthened company with combined sales of over € 260 million of which over half are in specialty intermediates, with three production sites and approx. 660 employees.  The enlarged business will pursue partnership opportunities in Asia and the Americas. In addition, the development of new applications for existing as well as new customer groups will further enhance the new company’s growth potential.

“This represents a successful first phase in executing our strategic roadmap, which we developed over the past year. The complementary business of SF-Chem will make the new CABB/ SF-Chem company a broader-based specialty intermediates company. SF-Chem brings highly skilled employees and adds new chemistry to our capabilities. The strengthened company will be able to improve its service to existing customers of both businesses“, commented Ruud de Boer, CEO of CABB.

Ueli Roost, CEO of SF-Chem commented: “With CABB – sharing the same industrial focus – we have found the perfect European partner and strategic shareholder. Our production sites, operations and distribution networks complement each other ideally. Together we can now tackle the next growth steps ahead of us.”

 “AXA Private Equity is pleased to support CABB’s acquisition of SF-Chem through the investment of additional equity; we intend to continue to strongly support CABB’s acquisition and organic growth strategy”, said Christof Namenyi, Director, AXA Private Equity.

About CABB

CABB GmbH is one of the world's leading suppliers of chemical building blocks based on chlorine and acetic acid. CABB is world market leader in monochloroacetic acid (MCAA) and holds excellent market positions for specialty intermediates such as MCAA esters, TCAA, glycolic acid
and 3-chloropropionic acid.  Headquartered in Sulzbach near Frankfurt/Main (Germany), CABB operates a worldwide sales network and achieves an annual turnover of around 150 million euros. At two manufacturing sites (Knapsack, near Cologne, and Gersthofen, close to Augsburg) CABB operates state-of-the-art technologies and constantly improves processes and products to achieve the highest quality and safety standards. CABB's 300 highly qualified staff members combine high commitment and dedication with the entrepreneurial spirit of a small, efficient and flexible organization. By tailoring all activities to its customers' needs and to market requirements, CABB strives to develop competitive advantage and build sustainable leading business positions with good growth perspectives.
www.cabb-chemicals.com

About SF-Chem

SF-Chem supplies customers in the chemical industry, in particular in the pharmaceutical, agrochemical and specialty chemicals industries. The company, founded in 1917, has its head office and production facilities at Pratteln in Basel, Switzerland. SF-Chem pursues a growth strategy with its independently operated business units Chemicals and Custom Manufacturing in order to ensure an autonomous worldwide market position. SF-Chem employs 360 people and achieves annual sales of CHF 180 million. 
www.sf-chem.ch. 

About AXA Private Equity

AXA Private Equity, an AXA Investment Managers company, is a world leader in private equity investments. It offers a wide selection of funds across a full range of asset classes: Buyout, Expansion and Venture Capital, Co-Investment, Mezzanine, Infrastructure, and Funds of Funds (primary, early secondary and secondary). AXA Private Equity manages and advises private equity funds with assets in excess of €12 billion for major international investors. With offices in Paris, Frankfurt, London, Milan, New York and Singapore, AXA Private Equity is distinguished by the expertise of its staff and its international reach.
www.axaprivateequity.com

Transaction participants

Buy-side:

• CABB: Ruud de Boer, Theo Geeroms
• AXA Private Equity: Christof Naményi, Wolfgang Pietzsch, Donald Oberholzer
• M&A Advisor: Greenhill (Chris Riley, Anthony Samengo-Turner, Roxane Tzanakakis)
• Commercial due diligence: A.D. Little (E. Polastro)
• Financial: Deloitte & Touche (E. Sachsalber, M. Bühler)
• Legal: Baker McKenzie (J.Frick, M. Petrin)
• Financing contracts: Milbank Tweed, Hadley & McCloy LLP (T. Ingenhoven, J. Wilms);
• Tax: E&Y (M. Kunz, B. Müller, R. Gerber, D. Gentsch)

Sell-side:

• Capvis: Tobias Ursprung, Eric Trüeb
• M&A: Sal. Oppenheim (Gian-Reto Conrad, Timo Knaak, Cornel Bartholet)
• Legal: Bär & Karrer (Felix Ehrat, Daniel Pfiffner)

Financing:

• DZ Bank (F. Schehl, D. Spangenberg)