SVP to sell German durable plastics maker Vestolit -sources
FRANKFURT, July 16
FRANKFURT, July 16 (Reuters) - Buyout group SVP Global is preparing to sell Vestolit, a maker of durable plastics used for window frames, floorings and pipes in a potential 300 million euro ($407 million) deal, three people familiar with the transaction told Reuters.
SVP has hired investment bank Jefferies to look for a buyer of the Germany-based polyvinyl chloride (PVC) producer, which it acquired in 2006 from now collapsed private equity investor Candover.
SVP and Jefferies declined to comment.
Vestolit, formerly part of chemicals group Degussa Huels, which was later acquired by Evonik, has annual sales of about 500 million euros and earnings before interest, tax, depreciation and amortisation (EBITDA) of roughly 40 million, one of the sources said.
The seller is hoping to see Vestolit valued at up to eight times its expected earnings, the person said.
Peers such as Braskem and Axiall are expected to be targeted by the sellers and to shortly receive initial information packages - so called teasers - the person said.
Petrochemicals company Westlake Chemical earlier this year bought PVC maker Vinnolit for 490 million euros from private-equity group Advent and may therefore decide against entering the race for Vestolit, the source said. ($1 = 0.7372 Euros) (Reporting by Frank Siebelt and Arno Schuetze; Editing by David Holmes)
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