Buy-Out Central Europe Said to Near Sale of Chemson Polymer

Buy-Out Central Europe II Beteiligungs-Invest AG is nearing a sale of Austrian chemical maker Chemson Polymer-Additive AG, according to three people familiar with the plan.

The sale process is in the second round and the private equity firm has narrowed the field of suitors to less than five, said two of the people, who asked not to be named because the information isn’t public. Lincoln International AG is managing the sale, said the people.

Chemson, based in Arnoldstein, Austria, generated 250 million euros ($332 million) in 2011 sales from its range of chemicals that include lead-free additives for polyvinyl chloride, or PVC. Earnings before interest, tax, depreciation and amortization totaled 12 million euros. The asset is expected to fetch a multiple exceeding the typical six times Ebitda valuation applied to its industry, two of the people said.

Buy-Out Central is focusing on industrial buyers, though other private equity firms have expressed interest, they said. The buyout firm and Lincoln declined to comment on the sale.

A similar asset, Akdeniz Kimya Sanayi & Ticaret AS, was sold to Oyak Girisim, the venture capital unit of Turkey’s Oyak Group, last year. Oyak paid 500 Turkish lira ($280 million) for the company, Hurriyet newspaper said at the time.

Oyak would be a potential buyer for Chemson, one of the people said.

Buy-out Central Europe bought Chemson, whose PVC additives are used in materials for windows, fittings and cables, in 2008 from Swiss financial investor Leman Capital, it said on its website.

To contact the reporters on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net; Andrew Noel in London at anoel@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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