Carlyle prepares for $3B exit of specialty chemicals business PQ
American private equity firm Carlyle Group LP is reportedly preparing an initial public offering or a sale of PQ Corp. The possible deal could value the specialty chemical company at up to USD3 billion.
Sources told Reuters that Carlyle plans to talk to investment banks next week to choose underwriters for the proposed offering. The investment firm will also explore an outright sale of PQ to another firm, in what is known as a dual-track process.
The report said that PQ is estimated to have around USD300 million in annual earnings before interest, tax, depreciation and amortization (EBITDA). It could fetch up to 10 times that amount in a potential sale.
According to Reuters, PQ is a major producer of inorganic specialty chemicals for industrial and consumer markets. It was acquired by Carlyle for USD1.5 billion in 2007.
PQ in 2011 split its engineered glass products subsidiary, Potters Industries, to pay. down debt under its credit facility, the report said.