3i sells agrochemicals company KemFine to Germany's CABB

3i Group PLC (III.LN) Wednesday said it has sold fine chemicals company KemFine to Germany's CABB, which paid EUR140 million according to a person familiar with the matter.

3i bought Finland-based KemFine in 2004 and said Wednesday that it had increased revenue by 80% and almost doubled profits during its period of ownership.

KemFine makes fine chemicals focused on the agrochemicals market and it has long-term relationships and supply agreements with leading agrochemical companies. It posted revenue of EUR81 million in 2010. KemFine is highly profitable, reaching a margin before interest, taxes, depreciation and amortization of 25% to 30% in recent years, the person familiar with the matter added.

"KemFine is absolutely the right partner to help us grow and develop the business," said Martin Wienkenhoever, CABB Chief Executive.

"This acquisition will further strengthen our leading market position, particularly in the area of custom manufacturing and tolling for the European and global life science majors," he added.