Carbon Black Producer Orion Files for IPO

Backed by private equity firms Triton Capital and Rhone Group, each of which owns 41.83% of the company through Kinove Holdings, Luxembourg-based carbon black producer Orion Engineered Carbons has filed for a US initial public offering that could raise as much as to $432 million and value company at up to $1.36 billion.

Kinove, which own 89.6% of Orion, will sell 18 million common shares, expected to be priced at $21-24 each.

The company's sales of the performance additive for coatings, polymers, printing, tires and mechanical rubber goods, generates most of its sales in Europe, North America and Asia.

Orion was founded in July 2011, when Triton and Rhone acquired the Evonik carbon black operations in a transaction valued at over €900 million. Evonik predecessor Degussa once was traditionally one of the leading producers of carbon black.

Morgan Stanley and Goldman Sachs are the lead underwriters of the ipo.

Kinove said it intends to use the proceeds from its sale of common shares to repay debt.