Audax Group, a Boston-based private equity firm, engaged Grace Matthews (along with a co-advisor) to develop and execute a strategy to maximize value to a strategic buyer during the sale of ColorMatrix, a portfolio company of Audax Group and a world leader in colorants and additives for plastics.
Having advised on ColorMatrix's founder's $175-million sale of the company to Audax Group in 2006, Grace Matthews was very familiar with ColorMatrix and the company's ability to provide technical solutions for beverage packaging, industrial extrusion, performance molding, and fiber end markets.
The marketing process for ColorMatrix involved a broad auction that included over 100 prospective private equity and strategic buyers. Grace Matthews, based on our expertise in chemicals, plastics, and additives, focused solely on high potential strategic buyers within the specialty chemicals industry.
After extensive research of market participation, product portfolios, geographic footprints, and potential synergies, Grace Matthews proceeded to handpick certain buyers, including PolyOne, for introductory meetings. These "fireside chats" informally introduced the ColorMatrix story, highlighted business fit, and generated strong interest from a number of strategic buyers.
PolyOne Corporation successfully bid over 11x EBITDA for ColorMatrix, whose global sales and EBITDA for June 30, 2012, were $196.8 million and $43.6 million, respectively.
The acquisition of ColorMatrix is a significant milestone in PolyOne's publicly stated commitment to focus more on specialty chemicals.