KKR Acquiring Hoechst’s Paint Company

Kohlberg Kravis Roberts & Co. said it’s buying German paint company Herberts from chemical and drug giant Hoechst for $1.7 billion in the New York-based buyout company’s biggest European investment yet. KKR and Herberts managers plan to acquire 100% of Herberts, Europe’s largest supplier of paint and other coatings, for a total equity investment of about $667 million. Financing for the rest of the $1.7 billion will come from a combination of bank loans and debt. KKR faced competition from several trade buyers over the deal. Hoechst is selling Herberts, which has 7,500 employees and annual sales of $1.5 billion, as part of a restructuring program that will shift its focus to life sciences from chemicals. KKR general partner Clifton Robbins said the company will be making more deals in Europe, where opportunities are arising because of a wave of restructuring, driven in part by the economic and monetary union and by a change in corporate culture.