Orion Engineered Carbons filing for US$300 million IPO

Orion Engineered Carbons Holdings Gmbh, which makes carbon black for printing and tyres, filed for a US initial public offering (IPO) worth US$300 million, according to document submitted to the American securities and exchange commission. The Frankfurt-based company, which used to be owned by Evonik, was acquired by private equity firms Rhone Capital LLC and Triton Advisers for $1.2 billion in 2011. Orion reported revenue of $1.8 billion last year.

The company makes two kinds of carbon black. The larger side of the business is rubber carbon, used in tyres and rubber goods. This brought in over 70 per cent of the company’s revenue last year. According to Law360, Orion controls a market share equivalent to 7 per cent of the global rubber carbon black market. The specialty business commanded about 24 per cent of the global market in 2013, the company said, with product applications in pigmentation, ultraviolet protection, viscosity control and electrical conductivity control. Specialty made up 29 per cent of the total revenues last year. Pre-tax profits (EBITDA) these two segments was roughly equal – specialty carbon black represented 51 per cent and rubber carbon black represented 49 per cent last year.

The company owns 13 power plants and has joint ownership in one. Its business is split up between Europe at 34 percent, North America at 27 percent and Asia at 24 percent, with the rest in Brazil, Africa and other areas.

Morgan Stanley, Goldman Sachs and UBS Investment Bank are bookrunning the deal.