By Greg Roumeliotis
NEW YORK, July 31 (Reuters) - Private equity firm AmericanSecurities LLC is exploring a possible sale of specialtychemicals manufacturer General Chemical Corp that could fetchmore than $1 billion, three people familiar with the matter saidthis week.
The Parsippany, New Jersey-based company, which provideswater treatment products used by municipalities and ingredientsused in prescription drugs, is working with Barclays Plc on the potential sale, the people said.
The people asked not to be identified because the matter isconfidential. American Securities and Barclays declined tocomment, while a General Chemical executive did not respond to arequest for comment.
General Chemical produces organic and inorganic chemicalsfor industries that also include food and beverage, pulp andpaper, industrial processing and agriculture, according toAmerican Securities' website.
American Securities took General Chemical private in 2009for $673 million, including assumption of $262 million in debtand liabilities, according to a note at the time by Moody'sInvestors Service Inc.
Specialty chemical companies can make appealing acquisitionsfor industrial conglomerates. Last year, buyout firm AEAInvestors LP sold Houghton International Inc, a U.S. producer ofmetalworking fluids and other chemicals, to a unit offamily-owned Indian conglomerate Hinduja Group for $1.05billion.
Public specialty chemical companies traded at an average 9.7times 12-month EBITDA to the end of May, according to a Junereport by KeyBanc Capital Markets Inc.
New York-based American Securities invests in companies withrevenues ranging from $500 million to $2 billion and has morethan $8 billion in assets under management, according to itswebsite.
Barclays (BARC)
