Platinum Equity, which is looking to sell BWAY Corp, has already more than recouped its investment in the maker of aerosol cans.
Los Angeles-based Platinum Equity put BWAY up for sale in May, according to the Wall Street Journal. The PE firm hired Goldman Sachs to run the process, the WSJ said. A sale of BWAY could fetch $2 billion, Reuters said.
BWAY is on the block but Platinum has decided to delay the auction for a few months, a source said. The company will likely be sold early next year, the person said. Instead, BWAY is currently shopping a $1.1 billion term loan it will use to repay existing debt and fund a special dividend to Platinum, according to Thomson Reuters Loan Pricing Corp. Moody’s Investor Service pegged Platinum’s payout at $200 million.
That is the latest distribution for Platinum. Last year, in May, BWAY issued $250 million in PIK toggle notes that were used to fund a $239 million dividend to Platinum, Moody’s said.
Platinum acquired BWAY, which makes paint and aerosol cans, from Madison Dearborn Partners in late 2012. The deal was valued at $1.24 billion. Platinum invested roughly $267.4 million of equity, Moody’s said. With its second dividend, Platinum already has made 1.6x its money.
Quick dividends aren’t new for Platinum. The PE firm closed its $1.1 billion buy of Blue Line Rental on Feb. 3. Weeks later the company issued $250 million in PIK notes, peHUB has reported. Blue Line used the new debt to fund a $202 million special dividend for Platinum and to pay down debt at the company, Moody’s said in a February note.
Goldman declined comment. Executives at Platinum and BWAY did not respond to requests for comment.
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