FRANKFURT, July 16 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
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
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