H.I.G. Capital is nearing final negotiations to buy the Polymer Additives unit of Ferro Corp in a deal expected to fetch up to about $200 million, two sources said.
[contextly_sidebar id=”2T1sWvZXGgWeAp4Um07A19eTUPblRhHs”]The unit of the publicly traded chemical firm generates about $230 million in annual revenue, with EBITDA of about $25 million, according to the sources.
The sale of the Polymer Additives business is expected to draw a purchase price multiple of 7x to 8x EBITDA, or about $175 million to $200 million.
An H.I.G. Capital representative declined to comment. A spokesperson for Ferro Corp did not respond to requests for comment.
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