Germany-based LANXESS is undergoing a sale process for its water treatment business which comprises ion exchange resins and reverse osmosis (RO) membranes, sources in the financial community said.
“There’s an intermediate round going on right now where several bidders have been selected make indicatory bids,” said a source.
“Both strategics and private equity are interested and it appears to be a very competitive process,” he added.
A LANXESS spokesperson said the company does not comment on market rumours.
LANXESS is targeting a valuation in the double-digit EBITDA (earnings before interest, tax, depreciation and amortisation) range, shutting out certain private equity players, a source noted.
Sales of the water treatment business are about €210m, with EBITDA of around €35m, a source said.
“It smells like a strategic deal,” a source said.
Teasers on the sale went out in late February to early March, and the process is currently “passing round 1B, which is before any due diligence”, a source said.
LANXESS’ water treatment business is its Liquid Purification Technologies (LPT) business unit which sits its Performance Chemicals segment. LPT produces ion exchange resins as well as RO membranes.
Bank of America is running the sales process, a source said. Bank of America could not be immediately reached for comment.
By Joseph Chang
Source: ICIS News
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
