(Bloomberg) -- Specialty chemicals manufacturer Element Solutions Inc. is exploring options including a sale, according to people familiar with the matter.
The company has hired Bank of America Corp. and Goldman Sachs Group Inc. as it gauges interest from potential suitors, said the people, who asked not to be identified discussing confidential information. The chemicals maker is most likely to draw interest from its peers, as well as from some financial investors, they said.
Shares of the Fort Lauderdale, Florida-based company have gained about 7% this year, giving it a market value of roughly $6 billion.
Deliberations are in the early stages and it’s possible Element Solutions will decide not to pursue a sale, the people said. Representatives for Element Solutions, Bank of America and Goldman Sachs declined to comment.
Any deal would add to the $84 billion transactions in the chemical industry globally this year, anchored by Abu Dhabi National Oil Co.’s acquisition of Covestro AG in a €12 billion ($13 billion) deal. Australia’s Woodside Energy Group Ltd. bought a clean ammonia project in Texas from OCI NV for $2.35 billion.
Element Solutions produces specialized chemicals that are used in sectors including automotive, computing and telecom, consumer goods, energy, medical and water treatment, according to its website. Its brands include MacDermid and Fernox.
The company was founded by Chairman Martin Franklin, who previously led Jarden Corp. Franklin grew Jarden from a small canning business into a diversified consumer-products giant that was eventually sold in 2016 for about $15 billion to the company then known as Newell Rubbermaid Inc.
Element Solutions was called Platform Specialty Products when it was listed on the New York Stock Exchange in 2013. It was renamed Element Solutions six years later.
--With assistance from Kiel Porter.
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