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Apax terminates MPM agreement

Apax Partners and Siemens are reported to have consented to terminate Apax's agreement to buy Mannesmann Plastics Machinery.

Apax Partners and Siemens are expected to announce today that the Apax acquisition of Mannesmann Plastics Machinery – a buyout worth $740m – is off, reports the Financial Times.

The report says that the financing for the deal was put in peril because the performance forecast for the business over the next two years has been reduced. It is understood that, while Apax does not have a clause in sale agreement which allows them to pull out due to material adverse change in the company's performance, there is a clause in the funding agreement which allows the banks to pull out if the business performance deteriorated.

The termination of the agreement is expected to be by mutual consent.