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Buyouts Snapshot: HIG Capital nears deal for Ferro Corp unit

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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Buyouts Snapshot is a brief look at selections of work that appear in our premium publication Buyouts. Buyouts is published by Buyouts Insider. Subscribers can read the full story here. Go here to subscribe to Buyouts.