Sika to Sell Some of MBCC Group's Assets to Cinven

By Mauro Orru

Sika AG agreed to sell MBCC Group's chemical admixtures assets in England, the U.S., Canada, Europe, Australia, and New Zealand to private-equity firm Cinven to allay concerns from the U.K.'s competition watchdog.

The Swiss specialty-chemicals company said Wednesday that it had pulled out of a deal to sell the assets to Ineos Enterprises after receiving "negative feedback" from the U.K.'s Competition and Markets Authority regarding its proposed acquisition of MBCC, and has opted to instead make a deal with Cinven, which the CMA has already approved as a suitable buyer.

"The fact that we reached an agreement with Cinven without material changes underlines once more the attractiveness of the chemical admixture business," Sika Chief Executive Thomas Hasler said. "Cinven with its extensive expertise in this sector is an ideal partner for continuing the successful growth path of this business which in turn will create significant opportunities for MBCC employees."

Sika said in 2021 that it would acquire MBCC from an affiliate of Lone Star Funds, in a transaction with an enterprise value of 5.5 billion Swiss francs, equivalent to $5.99 billion at the time.

However, approval of the deal hinges on the disposal of some MBCC Group's assets.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

03-22-23 1358ET