12 November 2012 14:30 [Source: ICIS news]
LONDON (ICIS)--US-based specialty chemicals firm Chemtura is to sell its antioxidants and UV stabilisers business to chemical industry-focused private equity firm SK Capital Partners for $200m (€158m), the company said on Monday.
The transaction, which includes manufacturing plants in the US, France and Germany, is expected to close by early 2013. The purchase price represents a 6.4x multiple on the adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) generated by that business unit for the year to 30 September this year, the company said. Revenues for the period were around $390m.
The price, which does not include certain additional liabilities that the buyer will be taking on as part of the sale agreement, is subject to a net working capital adjustment following the close of the deal, Chemtura said in a statement.
“This divestiture simplifies our business portfolio as we continue to invest in businesses with less economic sensitivity that make greater contributions to our strategy of focusing on specialty products and applications with greater growth potential in our strategic industry segments and in faster-growing regions,” said Chemtura CEO Craig Rogerson.
SK Capital is currently attempting to acquire Houston chemicals firm TPC Group in partnership with fellow investment house First Reserve.
A bid by the consortium of $40 per share was accepted in August, but has since been outbid by specialty chemicals company Innospec, which made an offer of $44-46 per share last month.
($1 = €0.79)
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