Byline: Yasmine Chinwala
EQT, the northern European private equity house, is set to complete its largest deal having won the auction of Haarmann & Reimer, the flavours and fragrances unit of Bayer, with a [euro]1.66bn ($1.67bn) bid.EQT beat off stiff competition from potential trade buyers Givaudan, the Swiss flavours and fragrances firm, and Firmenich, backed by Allianz Capital Partners. Kerry Group, the Irish firm, and Degussa, the German chemicals group, were also linked to the auction at one time, as well as private equity firms Cinven, BC Partners, Quadriga Capital and Blackstone.
The buy-out is only the fifth deal over [euro]1bn so far this year in Europe, and is the second largest after the Nomura pubs secondary buy-out deal, according to figures from the Centre for Management Buy-Out Research (CMBOR).
EQT has also acquired Dragoco, a family-owned competitor to Haarmann & Reimer based in the same town in Germany. It will merge the two businesses and the new company will then operate under a new name. …