February 7, 2017 / 2:51 PM / 10 months ago

LPC-Bankers gear up for Chryso sale with up to €330m of loans

LONDON, Feb 7 (Reuters) - Bankers are preparing up to €330m of leveraged loans to back a potential sale of chemical specialist Chryso as private equity-owner LBO France seeks an exit just under two and half years after buying it, banking sources said.

LBO France acquired Chryso in October 2014 from French private equity firm Wendel, which split up and sold off parts of its building materials business Materis.

It is now seeking to sell Chryso, which manufactures admixtures for concrete and cement, hiring Rothschilds to run the process that could see the company fetch a 9-10 times multiple, banking sources said.

The sale is due to kick off in the second quarter of this year and is likely to attract interest from industry buyers including US peers RPM International and GCP Applied Technologies, Italy’s Mapei and CVC-owned Parex, which was also formerly part of Materis, the sources said.

The sale is also likely to attract interest from private equity firms too, including PAI Partners and Ardian, with information packs due to be sent to at least 20 sponsors shortly, the sources said.

Bankers are preparing leveraged loan financings to back any potential sale, equating to around 5.5-6.0 times Chryso’s approximate €55m Ebitda.

Bankers are hoping the company will be sold to private equity in a bid to avoid another repayment to Europe’s liquid leveraged loan market, which is struggling to find event-driven paper.

LBO France and CVC declined to comment. Chryso and all the other potential bidders were not immediately available to comment.

Chryso is present in 70 countries through its 14 subsidiaries around the world. Its customers include cement manufacturers, concrete plants, precast manufacturers and construction companies, according to its website.

Additional reporting by Gilles Guillaume; Editing by Christopher Mangham

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