LONDON Feb 7 Bankers are preparing up to €330m
of leveraged loans to back a potential sale of chemical
specialist Chryso as private equity-owner LBO France seeks an
exit just under two and half years after buying it, banking
LBO France acquired Chryso in October 2014 from French
private equity firm Wendel, which split up and sold off parts of
its building materials business Materis.
It is now seeking to sell Chryso, which manufactures
admixtures for concrete and cement, hiring Rothschilds to run
the process that could see the company fetch a 9-10 times
multiple, banking sources said.
The sale is due to kick off in the second quarter of this
year and is likely to attract interest from industry buyers
including US peers RPM International and GCP Applied
Technologies, Italy’s Mapei and CVC-owned Parex, which was also
formerly part of Materis, the sources said.
The sale is also likely to attract interest from private
equity firms too, including PAI Partners and Ardian, with
information packs due to be sent to at least 20 sponsors
shortly, the sources said.
Bankers are preparing leveraged loan financings to back any
potential sale, equating to around 5.5-6.0 times Chryso’s
approximate €55m Ebitda.
Bankers are hoping the company will be sold to private
equity in a bid to avoid another repayment to Europe’s liquid
leveraged loan market, which is struggling to find event-driven
LBO France and CVC declined to comment. Chryso and all the
other potential bidders were not immediately available to
Chryso is present in 70 countries through its 14
subsidiaries around the world. Its customers include cement
manufacturers, concrete plants, precast manufacturers and
construction companies, according to its website.
(Additional reporting by Gilles Guillaume; Editing by