Paragon Partners explores Inprotec sale

The mid-market buyout group has appointed advisers at Houlihan Lokey to gauge interest in the Heitersheim-based company, one of the sources said. A formal sale process is expected to kick off later this summer, both of them added.

Inprotec, which provides industrial and spray drying services to clients including German chemicals maker BASF, will be marketed off EBITDA in the region of EUR 13m-EUR 15m, the sources said. In the event of sale, Inprotec could fetch around 10x core earnings, they added.

With BASF among Inprotec’s largest clients, prospective buyers are likely to pay close attention to Inprotec’s cluster risk during the due diligence process, one of the sources said.

While Paragon did not disclose the terms of its acquisition, the sources said the private equity firm paid around 8x EBITDA for Inprotec in 2018. Commerzbank advised management on the sale, according to Mergermarket intelligence.

A representative for Houlihan Lokey declined to comment. Paragon and Inprotec did not respond to requests for comment.

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• Topics
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• DACH
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• Germany
• Paragon Partners GmbH
• Houlihan Lokey