HIG to Buy Petrochem Carless With $630 Million in Revenue
HIG Capital’s European investment arm said it’s poised to acquire Petrochem Carless, a U.K. blender and supplier of solvents and fluids used in the automotive, crop and energy industries.
Talks with the company are at an “advanced stage,” Miami- based HIG Capital said in a statement today, without disclosing financial details. Petrochem Carless reported revenue of 390.3 million pounds ($630 million) in 2011, with operating profit of about 25 million pounds, similar to the year before.
The purchase would add to HIG’s investments in chemicals, giving scope for savings in procurement with Haltermann, a German refinery products maker that the U.S. buyout firm purchased last year serving a similar customer base to Petrochem Carless. Leatherhead, Surrey-based Petrochem Carless has a refining and blending plant in Harwich, east of London.
HIG’s strategy is focused on building up the strength of investments via acquisitions and market consolidation, before exiting at a later stage. The latest deal, which may be completed in early 2013, is subject to clearance from antitrust regulators. Competitors include global energy companies such as Exxon Mobil (XOM) Corp.
Petrochem Carless generated 16.6 million pounds in cash last year and debt stood at 5.4 million pounds. The company said at the start of this year that “strong customer demand” was continuing.
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