Golden Gate Capital to Plan $1.6 Billion Sale of Angus Chemical

(Bloomberg) -- The private equity firm Golden Gate Capital is planning a sale of Angus Chemical Co. that could value the business at more than $1.6 billion, according to people with knowledge of the matter.

The San Francisco-based firm is working with Morgan Stanley and JPMorgan Chase & Co. on an auction process for Angus following unsolicited interest from potential buyers, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The company generates about $150 million in annual earnings before interest, taxes, depreciation and amortization, the people said.

It could sell for a multiple of more than 11 times annual Ebitda, one of the people said.

Representatives for for Angus, Golden Gate and JPMorgan declined to comment. A representative for Morgan Stanley didn’t respond to a request for comment.

Angus makes specialty chemicals for the biotechnology, paints and coatings, industrial, personal care and other markets, according to its website. Golden Gate acquired the Buffalo Grove, Illinois-based company in 2015 from Dow Chemical Co. for about $1.2 billion.

Golden Gate operates as a private holding company, according to its website, which enables it to hold onto companies much longer than traditional private equity firms. Its portfolio includes California Pizza Kitchen Inc. and software company Infor, according to its website.

To contact the reporter on this story: Kiel Porter in Chicago at kporter17@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Michael Hytha

©2019 Bloomberg L.P.