SK Capital Exploring Sale of Niacet Worth Up to $1 Billion
SK Capital Exploring Sale of Niacet Worth Up to $1 Billion
(Bloomberg) -- SK Capital Partners LP is considering a sale of food-preservative and drug-ingredient maker Niacet Corp., according to people familiar with the situation.
The New York-based buyout fund is working with advisers on a possible auction of Niacet, said the people, who asked not to be identified because the matter is private.
The asset generates about $70 million in earnings, putting the potential value at up to $1 billion, one of the people said. No plans are final and SK Capital could still opt to keep the business.
A representative of SK Capital declined to comment. A representative for Niagara Falls, New York-based Niacet didn’t immediately respond to request seeking comment.
SK Capital, which focuses on chemical and pharmaceutical investments, is timing the sale with a surge in demand for food and health-related assets that have been resilient during the coronavirus pandemic. Niacet’s chemicals are used as preservatives in ready-made meals that have been popular due to restrictions on eating out.
Niacet’s larger competitors include BASF SE and Cargill Inc.
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