Chemicals producer Rockwood Holdings is preparing the sale of two of its subsidiaries. The sale is expected to reach US$2 billion with the increasing recovery of the US construction sector.
Initially, there was little interest for its Sachtleben unit but now the interest has ramped up with the inclusion of its German titanium oxide unit, according to anonymous sources familiar with the transaction. These assets, according to the chemicals giant, can create synergies with its merger with other companies and likely, private equity firms alongside it.
The initial bids made on the combined units are due before April's end and the estimated EBITDA is 6.7 times initial revenue as against taxes, interest, depreciation and amortization. The potential bidders for the business include Bain Capital, Permira, EQT and Blackstone Group LP.
All the equity firms participating as well as the sale organizer Lazard declined to comment while Rockwood did not return requests for their comment on the matter.
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