(Adds context, valuation)
By Arno Schuetze
FRANKFURT Oct 12 Belgium-listed chemicals group
Sapec has launched the sale of its agricultural
chemicals business as it streamlines its portfolio, two people
close to the matter said.
The company has asked Lazard to find a buyer for the
business and tentative buyers have already been asked to sign
non-disclosure agreements, the people said.
Sapec was not available for comment while Lazard declined to
In the first six months of 2016, sales at Sapec's
agricultural chemicals business were roughly flat at 120 million
euros ($134 million), while earnings before interest, taxes,
depreciation and amortisation (EBITDA) rose by a third to 20
The agrichemicals sector has seen a wave of consolidation,
including Bayer's acquisition of Monsanto and
ChemChina's purchase of Syngenta.
While these deals valued the targets at roughly 17 times
expected core earnings, Sapec's agrichemicals unit is unlikely
to reach a similar price tag as it is a mixture of higher-margin
crop protection and lower-margin fertilizer business.
Potential bidders were expected to value the business at up
to 10 times its expected core earnings, or up to 400 million
euros, a person familiar with the matter said.
($1 = 0.8928 euros)
(Additional reporting by Robert-Jan Bartunek; Editing by
Christoph Steitz and Louise Heavens)