Sunday, February 2, 2020

Carlyle Delays Atotech IPO due to Coronavirus

NYT reported:

Buyout firm Carlyle Group Inc has delayed the U.S. initial public offering (IPO) of its German specialty chemicals group Atotech, concerned that the coronavirus outbreak would negatively impact the valuation it could achieve with investors, people familiar with the matter said on Friday.
Why would a German chemical company need to postpone its public offering due to a Chinese coronavirus outbreak?
Atotech, which makes specialty chemicals and equipment for printed circuit boards and semiconductors, had planned to kick off its IPO process this week by publishing an indicated price range. 

However, Carlyle became concerned that Atotech's production and business exposure in China, as well as the broader market volatility caused by the outbreak, would hurt investor demand in the IPO.
NASDAQ reported:

Atotech operates several manufacturing facilities in China, accounting for 38% of the revenue in its chemistry segment, which in turn makes up about 90% of its business.  The sources requested anonymity because the decision is confidential.
Carlyle leaks what it wants to leak and its leaders won't give interviews to reporters who ask pesky questions about the private equity underwriter's (PEU) biggest failures, ManorCare, Philadelphia Energy Solutions and Carlyle Capital Corporation.  Recent bankruptcies include Acosta and Addison Lee.

Carlyle is in the midst of selling affiliates or handing them back to lenders.  What's on the PEU horizon?