Carlyle, Bain and Permira are among the bidders that have placed second round bids with a view to acquiring Dyno Nobel, the Norwegian explosives company. Industri Kapital recruited Citigroup to review its option for the business in March.
Sources close to the firm said that IK would review the bids by the end of August and announce its plans for the business in September. The Nordic-based buyout firm has not ruled out a flotation or recapitalisation of the business, nor a sale to a financial or trade buyer. Macquarie Bank is also through to the second round.
Industri Kapital acquired Dyno ASA through investee company Nordkem in 2000 for US$1.2bn. It transferred the explosives division into a new company after the buyout, creating Dyno Nobel. Dyno Chemicals was merged with Neste Chemicals. According to reports, the Macquarie bid is for around US$1.1bn.
IK refocused the business through the divestiture of a number of non-core assets inherited from the time Dyno ASA was a publicly traded conglomerate. It also streamlined operations and backed strategic add-on acquisitions to more than double operating profit as owner of the business.