07 December 2011 22:52 [Source: ICIS news]
NEW YORK (ICIS)--US-based oleochemicals producer Vantage Specialty Chemicals is close to being sold, with a private equity firm the likely buyer, several sources in the financial community said on Wednesday.
“The sale of Vantage is in the final stage with a buyer already selected and an announcement likely to come within the next month,” said one source.
The company, owned by US-based private equity firm HIG Capital, generates about $50m–60m (€38m–45m) in annual earnings before interest, tax, depreciation and amortisation (EBITDA), according to a number of sources.
The sale multiple is said to be relatively high at over eight times EBITDA, making for a final price of between $400m–480m or higher.
Vantage is being sold through a formal auction process that started several months ago, according to sources.
“It was a food fight among private equity firms – many were actively pursuing this asset,” said another source.
“Several private equity firms were after this asset – it was hotly contested,” another source said.
“This is indicative of the current [mergers and acquisitions] market where buyers are willing to pay good multiples for good businesses with scale,” he added.
The buyer is likely US-based private equity firm The Jordan Company (TJC), said one source.
TJC is no stranger to the chemical space. It owns US-based Haas Group International, a provider of chemical management services.
TJC would not comment on the information.
The Vantage assets comprise three US-based oleochemicals acquisitions made by HIG Capital – Chicago Oleochemicals (owned by UK-based Croda), Lambent Technologies and Lipo Chemicals.
HIG Capital, Vantage and TJC were contacted, but did not immediately respond to a request for comment.
($1 = €0.75)
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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