ColorMatrix, which makes liquid color and additive concentrates for thermoplastic products, has projected annual EBITDA of around $45 million to $50 million, according to the sources, who spoke on the condition of anonymity because the auction is not public.
Audax is hoping to get upwards of 9x forward EBITDA for the company, according to the sources, who said the price target may be aggressive. The private equity group has hired Robert W. Baird to advise it on the sale, the sources said.
Audax acquired Richland Hills, Texas-based ColorMatrix in 2006 and has expanded its business through a series of add-on deals. The company also has opened new facilities in Russia and China while part of the Audax portfolio.
Audax, ColorMatrix and Baird could not immediately be reached for comment.
(Michael Erman is a correspondent for Reuters in New York; additional reporting by Soyoung Kim.)