Atrium Innovations and Subsidiaries Acquire Mucos Emulsions

On July 12, 2007, Atrium Innovations Inc. and its subsidiaries acquired German-based Mucos Emulsions GmbH for a total amount of approximately US$175 million. In order to proceed with the Mucos acquisition, Atrium Innovations Inc. and its subsidiaries refinanced their bank debt on July 4, 2007, increasing their credit facilities with a lending syndicate led by National Bank Financial Inc. and RBC Capital Markets, as co-lead arrangers, to US$350 million. The credit facilities consist of cross-border acquisition facilities, made available to Atrium Innovations Inc. in Canada and Atrium Finance 1 ULC in the US. They are endowed with an accordion feature that permits the borrowers to increase the availability thereunder to an aggregate amount of US$425 million.

Atrium Innovations Inc. is a leading developer, manufacturer and marketer of value-added products for the cosmetics, pharmaceutical, chemical and nutrition industries. Through the acquisition of Mucos Emulsions GmbH, the group established a significant presence in Europe with a long-established and leading brand in the fast-growing health and nutrition market.

Atrium Innovations Inc. and its subsidiaries were represented by Manon Deslauriers, in-house counsel to the companies, and Lise Morissette and Claudette Bellemare of Heenan Blaikie LLP in Montreal. They were assisted by Charles Reagh of Stewart McKelvey for the Nova Scotia aspects of the transaction and Yves Quintin of Duane Morris LLP in Philadelphia for the US aspects of the transaction. In France, they were assisted by Ginette Leclerc and Juliette Anselmini of Gravel, Leclerc & Associés, and in Germany by Thomas Schultz, Klaus Berner and Eckhart Schleifenbaum of Noerr Stiefenhofer Lutz.

The lending syndicate was represented by David Lemieux, Felix Gutierrez and Alexandre Gagnon of Fasken Martineau DuMoulin LLP in Montreal and Jon Holmstrom in Toronto. They were assisted by Michael Clain and Eric Bruenner of Windels Marx Lane & Mittendorf in New York for the US aspects of the transaction. In France, they were assisted by Cédric Lougnon, Yvon Dréano and Vincent Netter of Jeantet Associés, and in Germany by Ruediger Litten and Alexander Schwenk of Norton Rose.