UPDATE 1-Buyout trio chase Dutch chemical firm IMCD-sources

* Bain, Cinven, New Mountain battle for IMCD-sources

* Binding bids due next week, source says

* Initial bids valued firm at 600-700 mln euros-source

(Adds detail on initial bids, EBITDA, multiples, New Mountain)

By Simon Meads and Quentin Webb

LONDON, Dec 6 (BestGrowthStock) – New Mountain Capital is vying with
larger private equity rivals Bain Capital and Cinven [CINV.UL]
to buy Dutch chemicals distributor IMCD, which has nearly 1
billion euros ($1.3 billion) in sales, people familiar with the
matter said.

The trio are in the second round of bidding for the
Rotterdam-based chemical distributor, which has been owned by
ABN Amro’s former private equity arm AAC Capital since 2005.

Binding bids are due next week, one of the people said,
adding Hellman & Friedman had also entered the second round of
the auction but had dropped out.

The private equity firms either declined to comment or were
not available for comment. IMCD did not respond to a request for

IMCD has 800 staff in 31 countries and 925 million euros
($1.2 billion) 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 drugs.

New York-based New Mountain, which manages investments worth
more than $8.5 billion, is run by Steven Klinsky, a former top
lieutenant of leveraged-buyout (LBO) pioneer Teddy Forstmann.

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

The private equity firms tabled initial bids of between 600
and 700 million euros for the business, another of the people
said, or about 8.6 to 10 times EBITDA.

That is roughly in line with German chemicals distributor
Brenntag (BNRGn.DE: ), floated by BC Partners [BCPRT.UL] earlier
this year, which trades at an enterprise value of about 8.9
times trailing ebitda.
(Editing by David Cowell)

($1 = 0.7541 euro)

UPDATE 1-Buyout trio chase Dutch chemical firm IMCD-sources