Carlyle Group And The AZ-EM Buyout (A) Case Solution

IMD-3-2045 © 2009
Chakravarthy, Bala; Leleux, Benoit F.; Lachowitz, Jonathan

It was a call from Ken Greatbatch, the previous CFO of Vantico, with really intriguing news: Clariant’s effort to auction off its running department, AZ Electronic Materials (AZ-EM), had actually failed. Clariant required to make the offer take place, and quick; it had actually assured investors and experts throughout the summertime of 2003 that it would decrease its financial obligation level by practically EUR800 million.  To dispose off its department, Clariant had actually at first crafted an auction amongst AZ-EM’s closest rivals, however had actually not flourished in discovering an appropriate purchaser. Confronted with the unsuccessful auction, enhanced pressure from investors and a clear requirement to raise money quickly, Clariant resorted to its second-best choice– a worked out sale with a competent personal equity purchaser.

Subjects: Private equity; Buyout; Leverage; Turnaround; Incentive structures; Chemical industry
Settings: Speciality chemicals; Switzerland ; Mkt Cap.: Electronics ; CHF 500 million ; 2004-2009

Carlyle Group And The AZ-EM Buyout (A) Case Solution
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