Audax Is Said to Explore Minority Sale of Chemical Group ICP

(Bloomberg) -- Audax Group, a Boston-based private equity firm, is exploring the sale of a minority stake in Innovative Chemical Products Group, according to people familiar with the matter.

The firm is holding talks about selling as much as 49% of Andover, Massachusetts-based ICP, said the people, who asked not to be identified because they weren’t authorized to speak publicly. A deal could be reached this year or early in 2022, the people said.

The company is generating about $200 million in earnings before interest, taxes, depreciation and amortization, with a deal set to value ICP at more $2 billion, the people said.

A final decision hasn’t been made and Audax could decide to keep the stake, they said.

Representatives for Audax and ICP didn’t immediately respond to requests for comment.

Audax created ICP in 2016 through the merger of existing portfolio companies CPC and Nicoat. The combined group was one of several portfolio companies purchased by its first continuation fund in January 2021 from Audax Private Equity Fund IV, a 2012 vintage pool. 

The continuation fund, whose backers include AlpInvest Partners and Lexington Partners, is designed to give additional time and capital to support growth, according to a release.

ICP, led by President and Chief Executive Officer Doug Mattscheck, is one of the largest coatings, adhesives and sealants companies in North America, according to its website. 

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