Article/Intelligence
Syensqo Attracts Sponsors for Oil & Gas Unit Sale; Bank of America to Collect Binding Offers Within Two Weeks
Reporting: Kezia Pearce-Kelly
The sale of Belgian chemicals company Syensqo’s oil & gas unit has entered the second round of bidding with binding offers due within two weeks, sources told Octus, formerly Reorg.
Sell-side advisor Bank of America extended the binding bid deadline to allow new players to enter the race at the last minute as private equity sponsors prepare final bids for the asset, which is being marketed off €30 million to €40 million EBITDA, as reported.
The sale process was reignited at the end of 2024, which marked the second attempt at a sale after the unit was put on the block in 2022 by then owner Solvay. Syensqo was spun out of the Belgian chemicals group in December 2023.
The previous sale ultimately failed on pricing, sources said, with private equity bidders at the time cautious about the unit’s China-based sodium hypophosphite business, which has since seen low growth due to high oil prices.
The oil & gas unit sits within Syensqo’s consumer and resources segment, alongside Novecare, Technology Solutions and Aroma Performance. The consumer and resources segment makes up 42% of group net sales and 29% of group underlying EBITDA.
Underlying EBITDA for the consumer and resources segment was €125 million in the third quarter of 2024 but remained flat compared with the previous quarter, due in part to declines in the oil & gas division, according to its third-quarter results. Net sales for the oil & gas division in the quarter was €102 million.
Syensqo was spun off to enable Solvay to focus on businesses within essential chemicals, such as Coatis, soda ash, silica and peroxides. Syensqo was established to include specialty businesses such as specialty chemicals, oil & gas, composites, Novacare, Aroma and Technology Solutions.
Bank of America declined to comment. Syensqo did not respond to requests for comment.
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