NEW YORK, May 22 (Reuters) – The private equity owners of Recochem are exploring options including a potential sale of the specialty chemicals manufacturer that could value it at more than C$1.5 billion ($1.1 billion), according to people familiar with the matter.
Montreal, Quebec-based Recochem is working with boutique advisory firm Harris Williams on its sale process, which is expected to be launched in the coming weeks, the sources said, requesting anonymity as these discussions are confidential.
Recochem, which is owned by private equity firm HIG Capital, is hoping to be valued at about 10 times its 12-month earnings before interest, taxes, depreciation and amortization of about C$160 million, the sources added.
HIG declined to comment. Harris Williams and Recochem did not immediately respond to comment requests.
Founded in 1951, Recochem manufactures and distributes products including coolants, windshield washer fluids, hand sanitizers, and surface cleaners.
HIG, which has about $55 billion of assets under management, primarily focuses on mid-sized companies and its funds focus on strategies including private equity, direct lending, and special situations.
Recochem’s customer base includes auto dealerships, grocery chains, automakers, pharmacies, and gas stations. It has grown through a string of acquisitions since HIG took ownership of the company in 2018.
($1 = 1.3372 Canadian dollars)
Reporting by Abigail Summerville and David Carnevali in New York; Editing by Stephen Coates
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