Oct 3 (Reuters) - Specialty chemicals company Platform Specialty Products Corp is in advanced talks to acquire agrichemical company Arysta LifeScience Ltd from private equity firm Permira Advisers LLP, people familiar with the matter said on Friday.
A deal that could value Arysta at $3.5 billion, including debt, could come as soon as this month, the people said, cautioning that Permira may decide not to sell the company to Platform Specialty Products and opt to take it public instead.
The sources asked not to be identified because the discussions are private. News of the advanced talks were reported earlier by the Wall Street Journal.
A representative for Miami, Florida-based Platform Specialty Products, which has a market capitalization of $3.5 billion, declined to comment. Permira also declined to comment, while a representative for Arysta did not immediately respond to a request for comment.
Dublin-based Arysta last month registered with the U.S. Securities and Exchange Commission to float on the New York stock exchange.
Permira bought Arysta, which manufactures insecticides and veterinary medicines, in 2008 for 1.95 billion euros ($1.32 billion at the time). Arysta is the world’s largest privately held crop protection and life science companies with 2013 revenues of $1.6 billion, according to its website.
Platform Specialty Products went public in May 2013 and its stock is up 92 percent year-to-date. In April, Platform Specialty Products purchased an agrichemicals business of Chemtura Corp for about $1 billion.
Activist shareholder William Ackman’s Pershing Square Capital Management LP has a 24 percent stake in Platform Specialty Products according to Thomson Reuters data. (Reporting By Greg Roumeliotis and Mike Stone in New York; Editing by David Gregorio)