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; 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 marks a significant step in that process.
BP is being advised by Credit Suisse First Boston with regard to the sale.