German speciality chemicals group Atotech to list on NYSE

FRANKFURT (Reuters) - German speciality chemicals group Atotech is planning to list on the New York Stock Exchange, it said in a filing late on Wednesday.

The listing, which could value the company at about $5 billion, including debt, is expected to take place in early February, people close to the matter said.

Atotech makes speciality chemicals and equipment for printed circuit boards and semiconductors. More than a third of its revenues come from the smartphone industry.

Atotech's owner, buyout group Carlyle CG.O is working with Bank of America BAC.N, Citi C.N, Credit Suisse CSGN.S and JPMorgan JPM.N on the listing of the former unit of oil group Total TOTF.PA.

In the first nine months of 2019, the company posted adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $279 million on sales of $877 million.

Carlyle bought Atotech in 2016 at an enterprise value of $3.2 billion. The company has its roots in Schering’s Galvanotechnik unit, but was sold to France’s Elf Aquitaine in 1977.

The company could be valued at around $5 billion, or 13 to 14 times Atotech’s expected core profit of up to $400 million, people said at the time IPO preparations were launched in 2018.

U.S.-listed peers such as Cabot Microelectronics CCMP.O, Entegris ENTG.O, Quaker Chemical KWR.N and Versum Materials VSM.N trade at 14-22 times their expected core earnings.

As of Sept. 30, Atotech had cash of $247 million and debt of $2.2 billion on its books, the company said in its preliminary prospectus, adding it does not intend to pay any cash dividends for the foreseeable future as it wants to retain earnings to deleverage.

Reporting by Arno Schuetze; Editing by Bernadette Baum