In the Netherlands, DSM and CVC Capital Partners (CVC) have finalized the formation of ChemicaInvest B.V. for Polymer Intermediates (Caprolactam and Acrylonitrile) and Composite Resins. DSM contributed its global caprolactam business (Europe, North America, its 60% stake in DNCC (China) and the caprolactam licensing business), acrylonitrile business and composite resins business including its 75% stake in JDR (China). DSM’s 65% stake in the service organization Sitech Services held via its caprolactam and acrylonitrile businesses was also transferred. ChemicaInvest operates as an independent company with three business units: caprolactam, acrylonitrile and composite resins.
With all regulatory approvals now received, DSM and CVC have completed the transaction effective as of 31 July 2015. All approximately 1,900 employees have transferred to ChemicaInvest, which is 65% owned by CVC and 35% by DSM. Caprolactam, which has an annual estimated market of 2.25 million tonnes, is a primary precursor for Nylon 6. These days, it is generally produced from fossil sources, ultimately from the hydrogenation of benzene, one of the aromatics group — although originally it was made via aminocaprioc acid, which is derived from the key amino acid lysine, which we looked at in some depth late last month in The Three Microbeteers, here.
As background, CVC Capital Partners (CVC) is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC has secured commitments of over US$60 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of over US$120 billion. www.cvc.com