LONDON–CCMP Capital, through affiliates of CCMP Capital Advisors LLC and CCMP Capital Asia, Ltd., premier international private equity firms, have reached agreement with The Linde Group, the global gases company, to acquire BOC Edwards, a leading manufacturer of vacuum equipment. The deal is valued at €685m (£460m)*, with an additional payment of €65m (£45m) if CCMP Capital is successful in developing the business and subsequently exiting its investment.
BOC Edwards is a leading global supplier of equipment and services to the world’s most advanced industries, including semiconductor, flat panel display, chemical, metallurgical, analytical instrumentation and R&D. It supplies major manufacturers in Asia, Europe and the Americas through a worldwide manufacturing and sales network.
The acquisition follows last year’s acquisition of The BOC Group by Linde and Linde’s announcement last September that it intended to focus on its global gases operations and would review strategic options for the divestment of BOC Edwards.
CCMP Capital Advisors and CCMP Capital Asia are acquiring the main vacuum and semiconductor equipment business of BOC Edwards. The pharmaceutical division will remain a subsidiary of The Linde Group.
Commenting on the announcement Nigel Hunton, Chief Executive of BOC Edwards, said, “We are delighted to welcome CCMP as our new partners. We feel they have a real understanding for our business and its potential and that their financial strength and scale will support the company as we develop our operations worldwide and capitalise on our strong market position. This is the start of a new independent era for BOC Edwards in which we can focus on delivering world class products and services to our customers.”
Stephen Welton from CCMP Capital Advisors added, “We are very pleased to have reached agreement to acquire BOC Edwards. Our Diligence has confirmed the leading position of BOC Edwards, its management and staff, its extensive product range and its strong customer relationships. We believe that under CCMP’s ownership BOC Edwards can move to a new level as an independent company and develop its technology in new markets whilst retaining leadership in its core areas.”
John Lewis from CCMP Capital Asia commented, “BOC Edwards is an outstanding business with a rapidly growing Asian customer base, including leading semiconductor companies and equipment manufacturers in Greater China, Korea, Japan and Singapore. We will support management, using CCMP’s presence and experience in these markets to help BOC Edwards get closer to their fast growing Asian customer base.”
The companies expect to close the transaction between the beginning of May and the end of June subject to regulatory review and customary closing conditions. Financing for the transaction will be provided by Deutsche Bank, Lehman Brothers, Barclays Bank, and The Royal Bank of Scotland. Lehman Brothers is serving as the exclusive mergers and acquisitions advisor to CCMP Capital.
* Based on an exchange rate of 1.473 £/€
About BOC Edwards
BOC Edwards is a leading supplier of integrated solutions for the manufacture of microelectronics devices, including semiconductors and flat panel displays. It is also a world leader in vacuum technology for industrial, scientific, process, and R&D applications. BOC Edwards employs around 4,000 people globally, in the design, manufacture and support of high technology vacuum equipment. BOC Edwards invented the concept of the commercial oil-free ‘dry’ vacuum pump and now supplements this with a wide range of other pumping technologies as well as related products and services.
About CCMP Capital Advisors
The investment team of CCMP Capital Advisors, LLC has invested over $10 billion in over 375 buyout and growth equity transactions since 1984. The foundation of CCMP Capital’s investment approach is to leverage the combined strengths of its deep industry expertise and proprietary global network of relationships by focusing on five targeted industries: Consumer, Retail and Services; Energy; Healthcare Infrastructure; Industrials; and Media and Telecom. Through active management and its powerful value creation model, CCMP Capital’s team has established a reputation as a world-class investment partner.
Selected investments include: AMC Entertainment, Aramark Corporation, Generac Power Systems, Grupo Corporativo ONO, Hanley Wood, Harbor Point Re, PQ Corporation, Quiznos Sub, SafetyKleen Europe and Warner Chilcott.
Prior to forming CCMP Capital, the firm’s principals led the buyout and growth equity investment business of J.P. Morgan Partners, LLC, a private equity division of JPMorgan Chase & Co. CCMP Capital follows the successful investment strategy its principals developed and implemented as members of JPMorgan Partners.
CCMP Capital is a registered investment adviser with the Securities and Exchange Commission.
About CCMP Capital Asia
CCMP Capital Asia, Ltd. is one of the largest and most experienced buyout firms in Asia, with US$2.7 billion in capital commitments under management. Since its launch in May 1999, CCMP Capital Asia has advised on total investment commitments of over US$1.6 billion in 24 companies with total transaction value of over US$10 billion. The commitments are spread across Asia in CCMP Capital Asia’s focus markets of Australia, Greater China, Japan, Korea and Singapore. CCMP Capital Asia’s core strategy is to target control investments in market leading companies with strong cash generative business models, high barriers to entry and differentiating capabilities or products. In particular, the Firm focuses on companies where it is able to utilize its operationally driven business model to create value and drive returns.
Representative investments include: Air International Thermal, ASAT, Buy The Way, Godfrey’s, Haitai Confectionary, Mando Corporation, Metalform, Rhythm Corporation, Sanda Kan Industrial, Waco and Yellow Pages Singapore.