Acquisition of European Businesses
Industry: Manufacturer – Colour Pigments
Company Profile: Dominion Colour located in Canada, and its subsidiary companies
in the U.S., UK and South America, manufacture, market and distribute a full range of
coloured inorganic and organic pigments, as well as pigment preparations
and dispersions, specialty coatings and digital inks.
NewPoint’s Role: NewPoint was retained as exclusive financial advisor by DCC
to assist in negotiating the purchase financing and all purchase terms related to the
acquisition of two pigment divisions from BASF. NewPoint was responsible for negotiating
price, structure and payment terms that not only satisfied BASF but also needed the approval
of the U.S. and European competition and trade groups.
Transaction Snapshot: In 2008, BASF acquired Ciba Holdings Inc. In order for the Federal
Trade Commission and the European Commission's Directorate-General for Trade to approve the
transaction, BASF had to divest individual product lines and production plants as well
as product licenses. BASF approached DCC’s management on acquiring two pigment divisions,
formerly owned by Ciba. NewPoint’s value add was to assist management in negotiating the
key deal terms with BASF, and with both the FTC and the European Commission.
In addition, NewPoint presented various financing options to DCC’s shareholder group
and was required to run a financing process that met shareholder objectives.
