Archroma has been put up for sale. The company recently concluded a successful, significantly oversubscribed debt refinancing round. This success is a striking testimony to the company’s ability to deliver on its promise of profitable growth. This has led several equity funds and players to express their interest in taking a stake in Archroma at interesting valuation levels.
SK Capital Partners is the owner of Archroma. Archroma was formed by the textile, paper and emulsions businesses of Clariant in October 2013. Since then, Archroma has been growing organically. In May 2014 it acquired M Dohmen, an international group specialized in the production of textile dyes and chemicals for the automotive, carpet and apparel sectors. In July 2015, it bought the global textile chemicals business of BASF.
Archroma is reportedly expected to reach earnings before interest, taxes, depreciation, and amortization of about CHF180 million this year. Banks are apparently working on debt packages of more than CHF900 million or more (five times more than Archroma's core earnings) to finance the deal.
SK Capital Partners is a private equity firm specializing in investing in recapitalizations, industry consolidation, businesses in transition, growth equity investments, corporate spinouts, corporate carve-outs, multinational companies, partnerships with family-owned businesses or entrepreneurs, and control buyouts in mature and middle market companies.