UPDATE 1-Carbon black producer Orion IPO to raise up to $432 mln

Mon Jul 14, 2014 6:39pm EDT

(Adds details from filing)

July 14 (Reuters) - Carbon black producer Orion Engineered Carbons S.A., backed by private equity firms Triton Capital and Rhone Group, filed for a U.S. IPO that could value the company at up to $1.36 billion.

Triton Capital and Rhone Group each own 41.83 percent of the company through Kinove Holdings, the filing said. (1.usa.gov/1nzBouC)

Kinove, which own 89.69 percent of Orion, will sell 18 million common shares, expected to be priced $21 to $24 each.

The IPO could raise up to $432 million.

Orion, which makes a form of carbon used as a performance additive in coatings, polymers, printing and in the manufacturing of tires and mechanical rubber goods, makes most of its revenue from Europe, North America and Asia.

Orion was created in July 2011, when Triton and Rhone acquired the carbon black operations of Evonik Industries Group in a transaction valued at over 900 million euros.

The company reported a 4 percent drop in revenue to 1.34 billion euros ($1.82 billion) for 2013 from the previous year.

The company posted a loss of 19 million euros, compared with a loss of 18.7 million euros a year earlier.

Morgan Stanley and Goldman Sachs are the lead underwriters of the offering, the Luxembourg-based company told the U.S Securities and Exchange Commission.

The company intends to list its common stock on the New York Stock Exchange under the symbol "OEC".

Kinove intends to use the proceeds from its sale of common shares to repay the principal amount of its outstanding PIK toggle notes due 2019, the company said. ($1 = 0.7345 Euros) (Reporting by Amrutha Gayathri in Bangalore; Editing by Don Sebastian)