Cinven and Investcorp portfolio company Avecia has signed an agreement to sell its Biocides business to Arch Chemicals for around $215m. Net proceeds from the sale will be used to repay Avecia’s bank debt.
Cinven and Investcorp backed the business in 1999 in a €2.152bn LBO. Since then Avecia has sold six businesses and reduced the number of core divisions from five to three. It is now concentrating on biotechnology, chemicals and neoresins.
Avecia CEO Jeremy Scudamore said: “The sale of the Biocides business is consistent with Avecia’s strategy of seeking opportunities that add value for Avecia investors.”