Foundry chemicals group ASK put up for sale - sources
By Arno Schuetze and Ludwig Burger
FRANKFURT, April 24 (Reuters) - ASK Chemicals, a maker or chemicals used in foundries, has been put up for sale by its private equity owner amid a flurry of dealmaking in the chemicals sector, people close to the matter said.
Buyout group Rhone Capital is working with Citi C.N on the deal, which may value the Germany-based supplier of binders, additives, feeders, filters and metallurgical products at up to 500 million euros ($559 million), the people said.
Rhone, which bought ASK Chemical from former joint owners Clariant CLN.S and Ashland ASH.N for $350 million in 2014, is expected to send out information packages to potential buyers in mid May, they added.
Rhone and Citi declined to comment.
Rhone is expected to market ASK Chemical to peers such as Vesuvius, Imerys, RHI, Huettenes-Albertus as well as private equity firms, the people said.
"ASK is heavily geared towards foundries, typically suppliers to the auto industry. So the question will be whether they want to increase their exposure to that sector," one of the people said.
ASK is expected to post earnings before interest, tax, depreciation and amortisation of about 65 million euros this year and may be valued at 7-8 times that based on past deals in the sector, the sources said.
The sale comes as chemicals groups such as BASF and Clariant are shedding non-core assets specialising in products for the construction industry or for makers of paints and coatings, and after Evonik struck a deal to sell its methacrylates plastics unit.
($1 = 0.8938 euros)
(Editing by Mark Potter)