Richardson Capital Ltd., the Canadian buyout firm with interests spanning flight simulators and oilfield services, is seeking to sell health-food ingredient maker Ocean Nutrition Canada, said four people with knowledge of the situation.
The private equity company has hired Deutsche Bank AG (DBK) to help find a buyer, said the people who declined to be identified because details of the sale process are private. Ocean Nutrition may be valued at about $240 million, based on a multiple applied to a similar deal a year ago, one of the people said.
Officials at Ocean Nutrition weren’t immediately available to comment when contacted late yesterday.
Richardson’s exit is coinciding with Pfizer Inc. (PFE)’s planned sale of a nutritional-supplement business that’s spurring interest in the industry and available assets, said the people. Ocean Nutrition will be attractive to all food-ingredient makers as well as specialty chemical makers that have moved into additives such as DuPont Co. (DD) and BASF SE (BAS), said one of the people.
Ocean Nutrition will likely attract a multiple similar to Martek Biosciences Corp. (MATK), bought by Royal DSM NV (DSM) of the Netherlands for almost $1 billion a year ago, one of the people said. DSM paid 8.02 times Martek’s Ebitda for the business. The median for comparable deals is 18.16 times earnings, according to data compiled by Bloomberg.
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