Buyout groups Triton, Equistone and an Asian chemicals company are preparing offers for a former business of Germany’s Evonik (EVKn.DE) put on the block by its private equity owner, people close to the deal said.
United Initiators makes components crucial to the production and processing of plastics — so-called peroxide based initiators — and owner Vision Capital has asked for final bids for the company to be submitted by the end of July, they said.
The offers are expected to value the specialty chemicals group at roughly 340-380 million euros ($376-$420 million) or about 7.5 to 8.5 times its 2016 expected core earnings of 45 million euros, the people added.
UK-based Vision Capital, sellside advisor Jefferies, as well as the potential bidders declined to comment.
The origins of United Initiators date back to 1911 when Dr. Adolph Pietsch & Co started producing peroxides in a Munich suburb.
British chemicals group Laporte later bought the firm before it was acquired by Germany’s Degussa – today part of Evonik – and then carved out in 2008.
United Initiators, which competes with companies like Arkema (AKE.PA) or OEP-owned Peroxychem, was bought by Vision Capital in 2011 from peer investor Speyside.
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