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Taminco seeks to raise $300 million from IPO

1:01 PM MDT | April 8, 2013 | Robert Westervelt

Apollo Management says it plans to sell 15 8 million shares, roughly a 24% stake, in amines producer Taminco as part of a planned initial public offering. The offering is being priced at $18–20/share and would raise $300 million if completed at the $19/share midpoint of that range, according to an SEC filing. The anticipated close of the IPO was not disclosed. Apollo acquired Taminco from CVC Capital Partners in February 2012 for $1.4 billion.

Taminco will use proceeds to redeem the $250-million principal amount of its PIK Toggle Notes, pay a $35-million fee in connection with the termination of a management consulting agreement with Apollo, as well as certain interest payments, according to the filing. Taminco will trade on the New York Stock Exchange under the ticker symbol TAM.

Taminco is the world’s largest producer of alkylamines and derivatives used in agriculture, water treatment, personal-care, animal nutrition, and oil and gas end-markets. The company generated revenue of $1.1 billion in 2012, flat with the prior-year period, and adjusted Ebitda of $240 million, up 4.6%. On a volume basis for 2012, functional amines represented approximately 53% of total volume, specialty amines represented approximately 38%, and crop protection represented approximately 9%. The company sold 48% of volume in North America; 36% of volume in Europe; and 16% of volume in the emerging markets, including 7% in Latin America and 9% in Asia.

The business currently operates in 19 countries with 7 production facilities and has an installed annual production capacity for amines of 1.3 million m.t. Amines, produced through the reaction of primary alcohols with ammonia, provide these certain characteristics such as neutralizing acidity and removing contaminants.

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