Jordan Co. sells chemical services company Haas Group for up to $700M
New York-based private equity firm Jordan Company has placed Haas Group International on the selling block. The deal could reportedly value the chemical management company at about USD700 million.
Sources told Reuters that documents for intention of interest were due last month. A deal could be crafted in the next several weeks after due diligence with a lead bidder possibly taking place now.
According to the report, Haas Group's estimated earnings before interest, tax, depreciation and amortization (EBITDA) of about USD75 million would value the company at up to USD675 million to USD700 million. This is based on 9x multiples often paid for successful companies in the chemical management space.
Meanwhile, another source estimated EBITDA of about USD50 million for the company. This would value it in the neighborhood of USD500 million, Reuters said.
Haas Group is an independent, fully-integrated provider of chemical management services. It manages all or parts of the chemicals and gases supply chain for customers in the aerospace, automotive, electronics, metals, food and beverage sectors, as well as the US Energy and Defense departments, the report said.
Jordan's Resolute Fund LP closed the deal to buy Haas Group in 2007 for an undisclosed sum, said Reuters.