Close Brothers Private Equity (“CBPE”), a UK mid-market private equity firm, today announces it has exchanged contracts for the sale of Minova with Orica Ltd, an Australian quoted company, for £357m.

Minova is the world leader in the manufacture of speciality chemicals used in the coal mining, metal mining and tunnelling industries. Minova’s products are used for underground strata reinforcement, strata support, ventilation seals and cavity backfill. The two key benefits of Minova’s products for its customers are improved efficiency and improved safety of underground operations.

CBPE backed the £32m MBO of Minova, formerly known as Fosroc Mining, from Burmah Castrol in an MBO in March 2003.

Minova, headquartered in Chipping Norton, UK, operates globally with 17 manufacturing facilities in 10 countries. Major operations are located in the USA, Australia, Poland, Germany, Russia, South Africa and China.

At the time of the MBO, CBPE and the Minova senior management identified the opportunity to accelerate the growth of the company partially through an acquisition strategy. The key imperatives were:

1. the acquisition of a US competitor
2. to acquire the 50% shareholding of the German joint venture partner
3. to acquire the small competitor businesses of the German joint venture
    partner,which were located in Poland, Russia and Australia.

In addition to acquisition growth, Minova demonstrated substantial organic growth and entry into new markets, in particular, China, the world’s largest underground coal market which offers significant growth potential.

Minova generated EBITDA of £36m in the 12 months to August 2006. This represents a fivefold increase in profits from the level of profitability at the time CBPE acquired the business.

Sean Dinnen, Partner at CBPE and Non-Executive Director of Minova since the MBO, said “We have greatly enjoyed assisting an outstanding management team build a genuine global business of real substance and quality.”

Sandy Arbuthnot, Chief Executive of Minova said “We are delighted to have worked alongside CBPE who have provided excellent support to the management and the business since the MBO.”

                                         -Ends-

Advisors:
Advisors to Minova and CBPE
Financial:  UBS - Pat Guérin, Hugo Robinson
Legal:  Richards Butler - Philip Taylor, Hywel Phillip

For more information contact: 

Close Brothers 

Private Equity 020 7065 1100
Sean Dinnen  020 7065 1132
Mathew Hutchinson 020 7065 1135

Merlin   020 7653 6620
Rebecca Penney 07795 108 178
Lachlan Johnston 07989 304 356

Notes to editors

About CBPE

• Close Brothers Private Equity was established in 1984 and invests in transactions with a value of between £20m to £150m. 

• CBPE has funds under management of €1 billion.

• It focuses on investment in the following sectors:
 - business support services
 - consumer products
 - leisure
 - specialist industrials
 - transport and distribution
 - healthcare and pharmaceuticals

• For further information visit www.cbpel.com