PAI Partners is exploring a potential sale of Swedish chemical company Perstorp Holding AB after receiving interest from potential bidders for the asset which is valued at as much as 2 billion euros ($2.3 billion), according to people with knowledge of the matter.
A sale process for the maker of animal-feed ingredients and caprolactone, used in sealants, is in the early stages and the private-equity firm is working with HSBC Holdings Plc, said the people, who asked not to be identified because the plan hasn’t been announced.
An exit would bring an end to a decade-long relationship with PAI, which is looking to take advantage of an improvement in some construction markets and easing costs for raw materials. PAI installed Jan Secher as chief executive in 2013, and the former head of Clariant AG has helped spearhead an overhaul that’s involved divestments and acquisitions.
While a trade sale is being explored, an initial public offering in Sweden is also an option, the people said. A representative for Perstorp declined to comment.
Like Dutch rival Akzo Nobel NV, Perstorp suffered when the new-build housing market slowed and prices failed to compensate for higher input costs. Secher reshuffled management as part of his overhaul and the business is now performing ahead of plan, the people said.
Perstorp is scheduled to announce second-quarter results on Aug. 27.