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Bain seeks quick IPO for Styron

10 Mar 2011

US private equity firm Bain Capital is looking to take plastics company Styron Corporation public less than nine months after closing the deal to acquire it from former parent Dow Chemical.

The Boston firm beat out rivals TPG and Apollo to win the auction for Styron, agreeing to pay $1.63bn in March 2010 and closing the deal in June.

Lead underwriters for the IPO are expected to be chosen in the next few weeks, although the process is in preliminary stages and could change.

The exit would be an unusually early one for a private equity firm, which tend to hold companies for a t least a couple of years.

Styron includes the company’s polystyrene, ABS, SAN, PC, styrene monomer, styrene-butadiene rubber and latex assets, and, based on 2009 data, is expected to generate around $3.5bn in annual revenue.

Dow sold the company as part of a move to offload non-core assets, and to significantly deleverage its balance sheet.

At the time of the sale, Andrew Liveris, chairman and CEO of Dow Chemical, said, “We are committed to further focusing our portfolio by shedding non-strategic assets that can no longer compete for growth resources inside the company, and in the process generating funds for further debt reduction.”

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