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Investindustrial is planning a sale of Polynt-Reichhold: Reuters
Posted on Friday, 16 October 2020 13:49
Private equity group Investindustrial is planning a disposal of Polynt-Reichhold in a deal that could value the speciality chemicals business at around EUR 2.00 billion, five people close to the situation told Reuters.
According to these sources, the buyout group is hoping to hire banks soon to prepare an auction that could take place in the first quarter of 2021.
Polynt-Reichhold could be valued at between EUR 1.50 billion and EUR 2.00 billion, including debt, based on core earnings of EUR 241.00 million in 2019, two of the insiders observed, asking not to be identified as the situation is still confidential.
The business was established in 2017 through the merger of Investindustrial’s Polynt and Black Diamond Capital-backed Reichhold.
Combined, the group has 41 plants globally and has a strong presence in Europe and North America.
North Carolina-based Reichhold was billed as one of the largest suppliers of unsaturated polyester resins for composites and a leading provider of coating resins for a variety of markets and applications.
Prior to the merger, Polynt claimed to be the world leader in the production, sales and development of organic anhydrides.
Polynt-Reinchhold raised a EUR 475.00 million term loan to refinance existing debt in February 2020, with JPMorgan acting as sole physical bookrunner.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 506 deals targeting basic chemical manufacturers announced worldwide in 2020 to date.
In the largest of these, Showa Denko is planning on injecting JPY 295.00 billion (USD 2.80 billion) into its wholly owned subsidiary HC Holdings.
Other companies to feature in the top 20 deals by value included Chr Hansen Holding's natural colour business, Yankuang Lunan Chemical, Hongda Xingye.
© Zephus Ltd