Chemical firm KMCO may fetch up to $360 mln in sale: sources

One of those sources said oil service giant Halliburton may be a possible suitor for KMCO. A Halliburton spokesperson declined to comment.

KMCO generates about $40 million in EBITDA and could sell for a purchase price multiple of 8x or 9x EBITDA, two sources said.

KMCO has been on the market for at least two months and reached a second round of bids, one source said.

Owner Resource Group, which is based in Austin, Texas, purchased KMCO for an undisclosed price on June 30, 2012. Founded in 1975 and based in Crosby, Texas, KMCO serves the automotive, petroleum, industrial and agricultural sectors as a specialist in custom chemical processing and specialty chemical manufacturing, according to a company press release.

RCP Advisors LLC, PNC Erieview Capital and Argosy Investment Partners IV LP took part in the 2012 investment in KMCO, with GE Capital leading the senior financing and PNC Erieview Capital leading the subordinated debt financing.

Jon Gormin, managing director of Owner Resource Group, said KMCO ranked as an industry-leading batch chemical processor in the industry, according to a 2012 statement. The firm’s leadership also includes Will Burnett, managing director, and J. Markham Green, executive chairman and managing director who retired from Goldman Sachs in 1992, according to the Owner Resource Group website.

Owner Resource Group invests in companies with more than $15 million in revenue with long-term growth prospects, with an “existing, capable management team” as partners, the firm said on its website. The investing team at Owner Resource Group has collectively led or participated in more than 35 investments in multiple industries, the firm said.

Owner Resource Group and KMCO did not respond to requests for comment.