Carlyle ready to list Atotech?
US private equity investor Carlyle is preparing an initial public offering for Berlin-based specialty chemicals group Atotech, reports the news agency Reuters. The Washington, DC-headquartered private equity group has asked investment banks to participate in the flotation, which could take place in New York next year, or possibly Germany, Reuters sources said.
The investor is believed to be seeking a valuation of Atotech of roughly $5 billion, about 13-14 times its expected core profit for 2018 of up to $400 million.
Acquired by Carlyle in 2016 for $3.2 billion or 12 times core earnings, the Berlin firm specialized in metallization, panel plating and corrosion protection for products such as printed circuit boards and semiconductors reported adjusted EBITDA of $329 million in 2017 on sales of $1.2 billion.
Earlier this year, Atotech increased its debt by $500 million to pay its owners a special dividend of the same amount, Reuters reported.
While a listing is seen as the most likely exit route for Carlyle, the funds are said to be considering consider potential bids from other chemicals groups or private equity firms. Ahead of the 2016 buyout, peers such as Belgian metals group Umicore and China’s Sinochem had shown interest.
Atotech, which has more than 4,000 employees, was founded in 1993 through a merger of Atochem's M&T Harshaw business in the US with Schering’s electroplating division. The transaction was part of a $10 billion asset disposal program generated by the merger of Elf Aquitaine and Totalfina, which created the current Total group.