Prefere Resins owner Silverfleet readies imminent sale launch

Information memorandums will be distributed to prospective buyers by sell-side adviser Houlihan Lokey in the coming days, following a series of fireside chats with Prefere Resins chief executive Arno Knebelkamp before Christmas, according to the sources.

Prefere – a European market leader in the production and sale of phenolic and amino resins, based in Erkner, Germany – is being marketed based on EBITDA of EUR 45m from sales of approximately EUR 400m, the sources added.

As the auction kicks off, two of the sources said that Rhone Capital-backed ASK Chemicals is expected to establish itself as the frontrunner to acquire Prefere. The German foundry chemicals manufacturer, which was acquired by Rhone from Ashland and Clariant in 2014, is understood to have identified synergy potential for Prefere, the sources said.

In the event of a sale, Silverfleet could fetch up to 8x core earnings for the business, or EUR 360m, two of the sources said.

The move to push ahead with a sale comes amid a wider consolidation push in the speciality chemicals space. Resins producer Arclin, based in Georgia, US, was acquired by The Jordan Group last August, while Westlake Chemical Corporation announced it would acquire the epoxy resins business of Hexion for USD 1.2bn in November. More than USD 42bn (EUR 37bn) was spent on speciality chemicals targets globally in 2021, Dealogic data shows.

Representatives for Silverfleet, Prefere and ASK Chemicals did not respond to requests for comment. Houlihan Lokey declined to comment.

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