Equistone weighs auction for United Initiators

The mid-market buyout group has appointed Evercore to prepare a sale process for the Pullach, Germany-based business that could kick off formally towards the end of the summer, according to the sources.

With deliberations still at an early stage, the timing around the launch of a process could slip further into the fourth quarter to accommodate market conditions, they said.

United Initiators, whose organic peroxides and persulfates are used in areas including hair bleaching, tooth whitening and oil and gas exploration, is likely to be marketed off approximately EUR 75m in EBITDA on EUR 400m in sales, the sources said.

Equistone is expected to target other private equity firms and industry players in its outreach, the sources said. One of the sources said that the vendor is likely to focus more on the sponsor community after it was met with a lukewarm response when gauging the appetite of strategic parties earlier this year. Still, US-based specialty chemicals maker W. R. Grace is among trade players that could take a look, another added.

In the event of a sale, United Initiators could fetch a high single-digit to low double-digit EBITDA multiple valuation, two of the sources said.

Equistone beat out other buyout groups including Bridgepoint and Triton to acquire United Initiators from Vision Capital and Speyside Equity for an undisclosed sum in August 2016. Jefferies advised the vendors on the sale effort, according to earlier Mergermarket intelligence.

A representative for Equistone declined to comment. United Initiators and Evercore did not respond to requests for comment.

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