Lone Star Said to Near $2 Billion Deal for CVC Chemical Firm AOC

Deal between buyout firms could be announced in coming days Sale of composite resins firm adds to private equity M&A surge

Private equity firm Lone Star Funds is nearing an agreement to acquire chemical producer AOC from CVC Capital Partners, people familiar with the matter said.

The deal to buy the composite resins business for more than $2 billion could be announced in the coming days, said the people, asking not to be identified because the information is private.

Lone Star emerged as the frontrunner at the end of June, moving ahead of other suitors, people familiar previously said. CVC acquired Alpha Corp. in 2018 and combined it with an existing portfolio company, later re-branding them as AOC. The company supplies resins for use in the construction, automotive and marine industries, according to its website.

Related News: M&A Boom Shows No Sign of Stopping After Epic First Half

A surge in buyout activity has contributed to a deal volume of $2.5 trillion in the first half of 2021, which puts this year on track to be the most active ever. Private equity firms have started spending their significant amounts of dry powder, sealing more than $550 billion of deals in the busiest six months on record, according to data compiled by Bloomberg.

Source Bloomberg

 

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.