UPDATE 1-Bain in 650 mln eur Dutch chemicals deal-sources

* Bain agrees deal with seller AAC over weekend -sources

* Values business at about nine times earnings

* New Mountain, Cinven drop out ahead of bid deadline-source

(Adds details, background)

By Simon Meads

LONDON, Dec 13 (BestGrowthStock) – Private equity firm Bain Capital
agreed to buy Dutch chemicals firm IMCD in a deal valuing the
business at close to 650 million euros ($857.5 million), people
familiar with the situation said on Monday.

The U.S. buyout group was in the second round of bidding for
the Rotterdam-based chemical distributor, which generates nearly
1 billion euros of annual sales.

Rivals New Mountain Capital and Cinven [CINV.UL] dropped out
of the process leaving Bain clear to agree a deal over the
weekend, ahead of a second round bid deadline on Monday, one of
the people said.

The private equity firms tabled initial bids of between 600
and 700 million euros for the business owned by AAC Capital, the
former private equity arm of ABN Amro, since 2005, a person
previously told Reuters.

Bain and AAC Capital declined to comment.

IMCD has 800 staff in 31 countries and 925 million euros in
revenues, according to an Aug. 30 press release. Its clients
include specialty chemicals companies, such as Wacker Chemie AG
(WCHG.DE: ), and producers of ingredients used to make food and

The company generates earnings before interest, tax,
depreciation and amortisation (EBITDA) of about 70 million euros
people previously said. Banks are offering to lend up to about
5.5 times EBITDA, one had said.

A deal at about 650 million euros values the business at
about 9.3 times EBITDA.

That compares with German chemicals distributor Brenntag
(BNRGn.DE: ), floated by BC Partners [BCPRT.UL] earlier this year,
which trades at an enterprise value of about 8.8 times for the
latest year.

Bain previously owned Brenntag before it sold the business
to rival BC in 2006. It still owns a small stake in the group.
(Additional reporting by Quentin Webb; Editing by Steve Slater,
Mike Nesbit)
($1=.7580 euros)

UPDATE 1-Bain in 650 mln eur Dutch chemicals deal-sources