SK Capital Considers $2bn Geon Performance Sale

Jul 18, 2022 | News | 0 comments

SK Capital Partners is considering a sale of Geon Performance Solutions that could value the chemical maker at about $2bn, according to people with knowledge of the matter.

The private equity firm is working with advisers to look at strategic options for Geon, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The firm, which last year generated about $200m in earnings before interest, taxes, depreciation and amortization, is expected to attract interest from other chemical groups and private equity firms, the people said.

SK hasn’t made a final decision on pursuing a sale and could decide to keep Geon, the people said.

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A representative for SK declined to comment. A spokesperson for Geon, based in Westlake, Ohio, didn’t immediately respond to a request for comment.

A sale of Geon comes in a strong year for chemical deals globally as demand across multiple sub-sectors has held steady or increased as the coronavirus pandemic eases. Large-cap deals in 2022 have included Celanese Corp. acquiring DuPont de Nemour Inc.’s materials arm for about $11 billion and Royal DSM NV agreeing to merge with fragrance maker Firmenich SA in a transaction valued at $21 billion, according to data compiled by Bloomberg.

Geon was created as a standalone entity after SK bought the performance products and solutions business of PolyOne Corp. for about $775 million in October 2019. The business, which has products that date back to the 1920s for uses including construction, has about 1,000 employees, spread across 11 manufacturing plants, according to its website.

Source: BNN Bloomberg

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