Total to sell Atotech Subsidiary?

French oil petrochemicals group Total is said to be preparing to sell its Berlin, Germany-based specialty chemicals and equipment division Atotech. Sources told the news agency Reuters the company could be valued at around €3 billion. Speculation that the business could be up for sale has been in progress since February, when Total said it planned to divest mostly non-core assets worth about $4 billion. In May, CEO Patrick Pouyanne said Atotech no longer fit the company’s strategic vision.

An auction of Atotech, whose annual revenues of about $1 billion stem from specialty chemicals and equipment for printed circuit boards and semiconductors, is likely to kick off this autumn, the Reuters sources said, adding that a number of private equity groups but no strategic buyers are interested.

Analysts have suggested the sale price could run to 12-13 times Atotech’s expected 2016 EBITDA of €250 million. The company is Total's sole remaining specialty chemical asset after selling adhesives producer Bostik in 2014 to Arkema.