Platinum Equity seeks BWAY sale as it takes second dividend

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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