Total SA has agreed to sell a specialty-chemicals business, Atotech BV, to the Carlyle Group for USD3.2 billion, part of the French energy company’s divestment efforts. The sale price represents 11.9 times Atotech’s 2015 adjusted EBITDA. In 2015, Atotech’s sales were EUR1 billion (USD1.12 billion).
Washington, D.C.-based Carlyle Group is a global alternative asset manager that is well positioned in Asia, Europe and the United States through its significant range of investments, and is one of the most experienced private equity investors in the global chemicals industry.
“Atotech, which is very active in Asia, is the worldwide leader in its high-tech segment, with a business model focused on innovation and customer relationships. Carlyle will enable Atotech to pursue its growth ambitions and serve its customers while respecting its commitments towards its employees and stakeholders,” said Patrick Pouyanné, chairman and CEO of Total.
Equity for the transaction will come from Carlyle Europe Partners IV, a EUR3.75 billion (USD4.20 billion) buyout fund, and Carlyle Partners VI, a USD13 billion U.S. buyout fund.
The sale takes Total closer to its target to dispose USD10 billion worth of assets by the end of next year. The deal, which was announced last Friday, brings the figure to USD8.6 billion since the start of 2015, which represents more than 80% of its target.
Other assets earmarked for sale include its Italian petrol station joint-venture with ERG, the Italian energy company, and parts of its North Sea oil and gas portfolio.