Cinven to buy Burmah Castrol's metallurgical chemicals and releasants divisions
12 Jul 2001
BP announced today that it has reached agreement with Cinven, one of Europe's leading private equity firms, for the sale of a number of Burmah Castrol's speciality chemicals businesses.
The businesses will be purchased from Burmah Castrol plc for £204 million, to be satisfied in cash and the assumption of debt, and held by a newly established company funded by Cinven.
The businesses to be sold include Foseco, which provides products and services to the foundry and steel industries; Foseco's stake in Fosbel, a joint venture company which provides services to operators of coke, glass and other furnaces.
The other businesses included in the deal are Chem-Trend, a manufacturer of specialised mould and die-cast release agents; and Remet, which supplies products to the casting industry.
Subject to regulatory and other approvals, the parties expect to complete the transaction in the third quarter of 2001.
In March 2000, when BP announced its intention to buy Burmah Castrol, the company also said it intended to dispose of Burmah Castrol's speciality chemicals businesses. Today's announcement is said to mark a significant step in that process.
