Global private equity firm Permira, said it had won the race to buy agrichemical company Arysta LifeScience for about 250 billion yen (US$2.2 billion) enterprise value, marking its first deal in Japan.
Permira said on Monday it was buying Arysta, the world's 10th-largest agrichemicals company, from fellow fund Olympus Capital Holdings Asia.
Privately held Arysta reported annual revenue of 124.1 billion yen ($1.1 billion) in 2006. Sources familiar with the transaction said Arysta reported earnings before interest, taxes depreciation and amortisation (EBITDA) of 15 billion yen.
The deal is valued at about 12.5 times forecast EBITDA for 2008, the sources said.
Olympus Capital had hired Goldman Sachs and Lehman Brothers to handle the auction of Arysta. Olympus bought 8.7 percent of Arysta in 2002 for around $80 million. Since then it has been gradually building up its stake.
Investment bank JPMorgan acted as adviser to Permira.
Completion of the transaction, subject to regulatory review and approvals, is expected to take place in first quarter 2008.
Last week, Reuters reported that Permira, Bain Capital, Japanese buyout house Advantage Partners were in the running to acquire Arysta. Indian-chemical maker United Phosphorus and Australia's Nufarm also were eyeing the Tokyo-headquartered company.
Reuters broke news that Arysta was up for sale in August.