Carlyle explores €3bn sale of Dutch salt and chemicals producer Nobian
Private equity firm Carlyle Group is reportedly considering a €3 billion sale of Nobian, a Dutch salt and chemicals producer, as part of its efforts to streamline its portfolio and focus on core businesses.
The Background
Nobian, formerly known as AkzoNobel Specialty Chemicals, was acquired by Carlyle Group in 2018 for €10.1 billion. The company produces a wide range of chemicals, including salt, chlorine, hydrogen peroxide, and other specialty chemicals used in industries such as agriculture, food and beverage, and healthcare.
The Potential Sale
According to sources familiar with the matter, Carlyle is working with advisers to explore a potential sale of Nobian, with an estimated valuation of around €3 billion. The move comes as Carlyle looks to capitalize on strong demand for chemical assets and unlock value for its investors.
If the sale goes through, it would mark Carlyle’s second major divestment in the chemicals sector in recent years, following the sale of PQ Corporation for $1.1 billion in 2019.
The Market Outlook
The chemicals industry has been experiencing strong growth in recent years, driven by increasing demand from key end markets such as construction, automotive, and electronics. This has led to a flurry of M&A activity in the sector, with several major deals taking place in 2021.
With Nobian being a leading player in the salt and chemicals market, the company is well-positioned to attract interest from potential buyers looking to capitalize on the industry’s growth momentum.
The Conclusion
The potential sale of Nobian by Carlyle Group highlights the private equity firm’s strategy to optimize its portfolio and capitalize on strong market demand for chemical assets. If the sale goes through, it could unlock significant value for both Carlyle and its investors, while also presenting an attractive opportunity for potential buyers looking to enter or expand their presence in the chemicals industry.
FAQs
Q: Why is Carlyle considering selling Nobian?
A: Carlyle is exploring the sale of Nobian as part of its efforts to streamline its portfolio and focus on core businesses with strong growth potential.
Q: What is the estimated valuation of Nobian?
A: The estimated valuation of Nobian is around €3 billion, according to sources familiar with the matter.
Q: How does the potential sale of Nobian fit into the current market environment for chemical assets?
A: The chemicals industry has been experiencing strong growth, leading to increased demand for assets in the sector. The sale of Nobian presents an attractive opportunity for potential buyers looking to capitalize on this trend.
