Keppel named preferred bidder for Blackstone-owned Ixom

Singapore-listed KIT gave no indication as to the size of the deal. The Australian Financial Review reported that the enterprise valuation could be in the region of A$1 billion ($709 million).

Based in Australia and New Zealand, Ixom claims to be the market leader in water treatment and chemical distribution, supplying customers in agriculture, mining, life sciences, and construction. The company, which has more than 1,000 employees globally, is also building its business in the Americas and Asia. Brands include Bronson & Jacobs, Keith Harris, Miex, and FarmGuard.

Orica moved to divest the business in 2014 to focus on its mining services operations. The decision coincided with uncertainty in global resources markets that had already hit Orica’s financial performance and prompted substantial job cuts. Blackstone paid A$750 million for the chemicals division.

This was the firm’s first private equity buyout in Australia. A second carve-out involving the panel repair business of automobile aftercare services provider AMA Group was agreed earlier this year. However, the A$508 million deal fell through when the Australian Tax Office turned down AMA’s request for demerger relief.

KIT has a market capitalization of approximately SGD1.76 billion and is managed by Keppel Capital, the asset management arm of Singapore conglomerate Keppel Corporation. The trust’s portfolio comprises a range of gas distribution assets, waste-to-energy plants, desalinization facilities, data centers, and renewable energy assets. Most of these are in Singapore.

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• Topics
• Australasia
• Trade sale
• Industrials
• The Blackstone Group
• Australia
• manufacturing
• Chemicals