January 25, 2017 / 2:28 PM / 3 years ago

Exclusive: Swiss chemicals group Archroma put up for sale by private equity owner: sources

FRANKFURT (Reuters) - Buyout group SK Capital has put Swiss chemicals company Archroma up for sale in a move that could value the company at 1.5 billion Swiss francs ($1.5 billion) including debt, people close to the matter said.

The investor has asked Evercore (EVR.N) and HSBC (HSBA.L) to find a buyer for a minority or majority stake in the company which it acquired from Switzerland’s Clariant (CLN.S) in 2013.

SK Capital and HSBC declined to comment, while Evercore was not immediately available for comment.

Information packages have been sent out to prospective buyers, mainly other private equity firms interested in chemicals companies, such as Advent, Apollo (APO.N), CVC [CVC.UL], Cinven [CINV.UL] and Blackstone (BX.N), they said.

First round offers are due in early February for the supplier of color and specialty chemicals, used in textiles, paper and packaging as well as by coatings makers, they added.

SK Capital and HSBC declined to comment, while Evercore was not immediately available for comment.

Archroma is expected to post earnings before interest, taxes, depreciation, and amortization of about 180 million Swiss francs this year.

The seller is hoping for a valuation of up to 9 to 10 times that, while bidders are expected to value it at 7 to 8 times, the people said.

Banks are working on debt packages of more than 900 million francs or more than five times Archroma’s core earnings to finance the deal, one of the people said.

Since the buyout, SK Capital has made acquisitions for Archroma such as BASF’s (BASFn.DE) global textile chemicals business and a stake in peer M. Dohmen.

Reporting by Arno Schuetze; Editing by Mark Potter/Ruth Pitchford

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below