Permira to buy Arysta Lifescience

Source: Exec Digital UK

Date :22/10/2007 12:35:11

Europe’s biggest private equity fund Permira said Monday it will buy agrochemical firm Arysta Lifescience Corp. for around $2.2 billion, making it Japan's largest private equity buyout this year.

Arysta was put up for sale by private-equity firm Olympus Capital Holdings Asia this summer.

For the takeover, Permira will use its own funds totaling some 100 billion yen, while it plans to procure the remaining 150 billion yen via loans from financial institutions.

The group said it will also keep Arysta's current management team in place.

Arysta President Christopher Richards will take part in the buyout deal via partial investment.

Private-equity

It is hoped the transaction will boost Japan's sputtering private equity market.

Private equity mergers and acquisitions have slumped 52 percent by value in the first nine months of this year, while globally such deals have grown 71 percent in value.

Earlier this month, a deal between Sanyo Electric Co. and Advantage Partners LLP to buy Sanyo's shaky semiconductor business fell through because Advantage was unable to obtain adequate funding.

Arysta was established in 2001 following a merger of agribusiness operations between Japanese trading companies Nichimen Corp., now Sojitz Corp., and Tomen Corp., now Toyota Tsusho Corp.

Olympus Capital Holdings Asia who bought Arysta in 2002, said the transaction is expected to close sometime in the first quarter of 2008.

October 22 2007

Related Links

Permira

Arysta Lifescience