IMCD Group BV, the Dutch chemical distributor owned by Bain Capital LLC, is seeking to be valued at as much as 1.15 billion euros ($1.6 billion) in an initial public offering that will allow it to make more acquisitions.
IMCD, a distributor of about 24,000 products from toothpaste and processed foods to specialty chemicals and plastics, is offering shares at 19 euros to 23 euros apiece, according to a statement today. The company will raise about 270 million euros from a sale of 14.2 million new shares, and current shareholders will sell about 8.3 million shares.
“The leverage will decrease post-IPO, meaning our possibilities to expand will increase,” Chief Executive Officer Pieter Van der Slikke said in a presentation.
IMCD, based in Rotterdam, has taken over 18 companies in 16 countries in the past three years, and purchases remain an important part of the distributor’s growth strategy, Van der Slikke said. The CEO expects debt after the sale to be about 2.5 times earnings before interest, taxes, depreciation and amortization, which was 99 million euros in 2013.
IMCD joins Spanish real estate investment trust Merlin Properties SA and Italian gaming operator Sisal Group SpA in attempting to sell shares in the busiest first half for IPOs since 2011, according to data compiled by Bloomberg. Wizz Air, Eastern Europe’s biggest budget carrier, today became the latest company to scrap its sale, citing market volatility in the airline industry.
Bain acquired IMCD in December 2010 for a reported amount of about 650 million euros. It raised 500 million euros of leveraged loans to fund the purchase, people familiar with the financing told Bloomberg News at the time. IMCD’s sales increased to 1.23 billion euros in 2013 from about 687 million euros in 2009, the company said today.
Van der Slikke said he expects Bain Capital to fully dispose of its stake in IMCD at some point and for more shares to trade publicly. Bain remains an important investor for now and will have three members on the five-person supervisory board.
Deutsche Bank AG and Goldman Sachs Group Inc. are among banks managing the sale on Euronext Amsterdam, which closes to investors on June 26. IMCD expects the first day of trading to be June 27.
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