Close Brothers Private Equity ("CBPE") announced today that it has reached agreement to acquire Fosroc Mining from Burmah Castrol for £32m. Fosroc Mining was one of the speciality chemicals businesses acquired by BP in its purchase of Burmah Castrol in 2000.

CBPE has made the acquisition together with Fosroc Mining's existing management team. Subject to regulatory and other approvals, the transaction will be completed during the first quarter of 2003. CBPE is investing £14.26m, representing 80% of equity. The balance of debt funding is from Barclays Leveraged Finance.

Fosroc Mining is recognised as the world leader in the supply of speciality chemicals to the global mining industry, with products including resin capsules, injection grouts, sealants and other consumables together with technical advice and support services to enhance efficiency and safety. The company has 13 manufacturing sites in seven countries, with key facilities in the US, Germany, Poland, Australia and South Africa. Fosroc Mining employs around 1,000 staff worldwide and 2002 turnover was £84 million.

CBPE Partner Sean Dinnen, who led the deal and will join the Fosroc Mining board as a non-executive director, said: "CBPE is acquiring a well managed business with a leading global market position, strong cashflows and good prospects for growth from corporate activity and geographical expansion. As a deal it highlights CBPE's appetite for the more complex transactions.
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Enquiries:

Sean Dinnen, CBPE – 020 7426 4000

This press release has been issued by Close Brothers Private Equity Limited. Close Brothers Private Equity Limited is regulated by the Financial Services Authority