In brief middle market

Permira will conduct a review of the strategic options regarding its investments in Travelodge, the UK-based hotel chain, according to a source.

The source said that a number of investment banks were in talks with Permira with a view to offering their services on options including an IPO, a trade sale and a recapitalisation of the business.

Earlier reports claimed that buyout firm Cinven was keen on acquiring Whitbread with a view to splitting up the group. Whitbread’s Premier Travel Inn was thought to be an attractive merger target for Travelodge.

In 2003, funds advised by Permira (formerly called Schroder Ventures) acquired both Travelodge and restaurant chain Little Chef from Compass Group for £712m (US$1.1bn).

At the time, it was reported that rival bids had been received from Apax, Cinven, Sun Capital and Starwood Capital.

  • Texas Pacific Group, a US-based buyout firm, has agreed a strategic partnership to run Turkey’s largest spirit maker, Mey Beverage Industry and Trade.

The deal with Nurol, Limak, Özaltin and Tutsab consortium, owner of Mey, had no announced value but Mey has about 80% of Turkey’s raki market and is a large producer of wine in the country.

Mey was formed in 2004 by the consortium acquiring Tekel Alcohol Beverages Industry and Trade, Alcohol Beverages Distribution and Marketing and Tekel through tender as well as 51% TASEL in Cyprus.

  • Hexion Specialty Chemicals, a private equity-backed maker of thermosetting resins, has amended its proposed flotation terms.

US-based buyout firm Apollo Management now plans to sell 13.9 million shares instead of 7.9 million shares at between $26 and $28 each through Credit Suisse and Goldman Sachs.

Apollo formed Hexion last year as a rollup of Germany’s Bakelite with US peers Borden Chemical and Resolution Specialty Materials.