Brachem Raises $769 Million from Sale of Brenntag Shares

Luxembourg-based investment firm Brachem Acquisition said it has raised €577.5 million from the sale of shares in German chemicals distributor Brenntag.

While Europe's market for new listings remains quiet, several days of rallying markets this month have given bankers a chance to run accelerated deals for clients, either raising new money or allowing major shareholders to cut their stakes.

The size of the offering was increased to 7 million shares, from 5 million due to investor interest -- making it equivalent to 13.6% of the company's share capital.

Brachem, which holds shares in Brenntag for private equity groups BC Partners and Bain Capital as well as Goldman Sachs, said the shares were placed at €82.50.

Brachem said it had cut its stake in Brenntag to 13.7% through the sale.

BC Partners, the largest shareholder of the three, last sold down its stake in Brenntag in January when it agreed to a 90-day lock-up on the further sale of any shares. However, a source close to the deal said this had been waived due to high demand for the stock.

The offering was several times oversubscribed, a banker said.