Deal financing falls through

CHICAGO HEIGHTS, Ill. — Specialty coatings supplier CFC International has terminated a buyout agreement that would have taken the company private. (see previous story)

CFC said the $75 million deal was ended after a financial backer of Quad-C Management, a private equity firm that was to acquire the company’s stock, backed out of the arrangement.

The company said Quad-C was unable to secure alternate financing, and the two sides agreed to terminate the deal and pay their own expenses.

The financial backer withdrew its support after Visa International told credit card manufacturers to stop issuing Visa cards containing a holographic magnetic stripe produced by CFC, the company said. Visa told the company that static electricity from a small number of the cards had caused card-readers to work improperly.