Bayer AG announced Friday that it has agreed to sell specialty chemical maker Rhein Chemie Rheinau GmbH to a Boston investment firm for Euro 215 million (U.S. $211 million).
Bayer, headquartered in Leverkusen, Germany, reached the deal with Advent International Corp. 11 months after putting Rhein Chemie and other non-core operations up for sale. Bayer officials said the subsidiary should have a bright future under Advents management.
Under this new ownership, Rhein Chemie would have excellent prospects of further expanding its strong market position, Management Board Chairman Werner Wenning said.
Rhein Chemie supplies specialty chemicals to the lubricants, rubber and plastics industries. Its products for the former include a wide variety of additives for industrial lubes ranging from metalworking fluids to hydraulic oils, industrial gear oils, biodegradable products and greases. Sulfurized extreme pressure additives are its principal products for the lubricants industry, sold under the Additin label.
It has 1,100 employees, half of them in Mannheim, Germany, where it is based, and had global sales of Euro 320 million (U.S. $314 million) in 2001. Lubricant additive manufacturing sites are Mannheim and Antwerp, Belgium. The company was founded in 1889 and acquired by Bayer in 1971.
Advent is one of the worlds largest private equity firms, with $6 billion under management and offices in 14 countries. Founded in 1984, it focuses on several fields, including chemicals and pharmaceuticals.
Bayer said it expects to complete the sale by early November, subject to approval of anti-trust authorities.