Permira (formerly Schroder Ventures Europe) has completed its first transaction under its new name. Along with GS Capital Partners and Schroder Ventures Life Sciences, the firm has acquired Cognis, the chemical products business from multinational Henkel. The original deal value, which was announced on September 12, has been reduced from EURO2.6 billion to EURO2.5 billion. The transaction is expected to close on November 30 and marks one of Germany’s largest leveraged buyouts. The total financing involved in the transaction, including working capital facilities, is EURO3 billion. Investors were unable to disclose details of the debt financing of the deal.
Henkel signed an agreement on September 12 with the investor consortium to sell Cognis. The agreement included a clause granting the investors the absolute right to withdraw from the transaction within two months. The consortium has decided not to exercise its special right to withdraw from the transaction.
Thomas Jetter, partner at Permira’s Frankfurt office, said: ” Since the agreement with Henkel was signed in September, we have spent a great deal of time working closely with the Cognis team. It is a reflection of Cognis’ great qualities that the funds are proceeding with the deal under the current circumstances.”