DLJ’s Investment Fund to Buy 90% of Insilco

Donaldson, Lufkin & Jenrette Inc., based in New York, said its investment fund agreed to buy 90% of Insilco Corp. for $437 million in cash, stock and assumed debt, giving the industrial parts maker and publisher the resources it needs to expand. Dublin, Ohio-based Insilco, which had sales of $539 million last year, will receive $174 million in cash, the companies said. Under the deal, Insilco shareholders will receive $44.50 a share, consisting of $42.98 in cash and about 0.03 of a share of the new company. In addition to making components for the automotive, electronics, telecommunications and other industries, Insilico publishes yearbooks. Its largest shareholder, Water Street Corporate Recovery Fund I, an affiliate of Goldman, Sachs & Co., agreed to support the transaction. Insilco shares rose 38 cents to close at $43.38 on Nasdaq. DLJ Merchant Banking II is a $3-billion fund dedicated to equity-related investments. DLJ rose $2 to close at $87.63 on the NYSE.