Florida Company Buy Of Italian Motor Oil Firm OK'd By EU

BRUSSELS September 19, 2003; Steve de Bonvoisin of Dow Jones reported that the European Union Commission Friday approved the acquisition by U.S. venture capital firm Vestar Capital Partners LLP of Italian motor oil company FL Selenia.

The deal is worth EUR670 million. Vestar will pay EUR470 to former owners Doughty Hanson & Co. Ltd. with the remainder used to pay off FL Selenia's debt.

Vestar plans to support FL Selenia's strategy of opening up markets and developing new products. It also will consider further acquisitions to complement FL Selenia.

"Continuously great performance, coupled with low capital requirements and substantial free cash flow all speak in favor of acquiring FL Selenia," said Vestar Capital Partners Europe President Robert Rosner.

Turin-based FL Selenia is the biggest European manufacturer of lubricants, fluids such as antifreeze and general components for the automobile industry. Formerly a unit of troubled Italian car maker Fiat SpA , the company was bought by Doughty Hanson in April 2000.

FL Selenia reported 2002 sales of EUR476.9 million and EBITDA of EUR84.5 million. It employs 1,000 people and has four production facilities.

New York-based Vestar Capital Partners manages a committed equity capital pool of $4 billion. Created in 1988, the company has completed 40 investments in companies with a total value of about $14 billion. 20% of the company's total investment is allocated to Europe.

The deal was approved under the Commission's simplified antitrust procedure. This clears mergers or acquisitions after one month if no objections are raised by third parties.