Breadcrumb Trail Links: Advent International in Talks with Oman for Majority Stake in OQ Chemicals

Advent International in Talks with Oman for Majority Stake in OQ Chemicals

Advent International is currently in discussions with Oman regarding a potential move to inject fresh capital into OQ Chemicals in exchange for a majority stake in the company, according to sources familiar with the matter. The private equity firm is proposing to provide up to $250 million of new equity into OQ Chemicals, with the deal potentially seeing Advent taking control of the company while OQ SAOC, the current owner, retains the remaining stake.

OQ Chemicals has been seeking a solution after OQ indicated that it would not be providing further funds to the business. This decision has disrupted plans to refinance the company’s outstanding loans, which are due this October. The company has been exploring various options, including proposals from creditors, but there is no certainty of a deal at this time.

The products manufactured by OQ Chemicals are utilized in a variety of industries, including cosmetics, lubricants, printing inks, and flavorings. The company has faced challenges in recent years due to a decrease in demand, rising natural gas prices, and financing costs.

Representatives for Advent and OQ Chemicals have declined to comment on the matter, while a spokesperson for OQ was not immediately available for comment. Advent previously owned OQ Chemicals until 2013 when it was sold to OQ for approximately €1.8 billion.

The proposed investment from Advent would be used to settle outstanding bills, interest payments, and improve the company’s financial position. This move would provide OQ Chemicals with a longer runway and the opportunity to negotiate with lenders for amended debt terms, as well as enhance its earnings and cash flow.

Advent’s portfolio also includes other chemical firms such as Röhm GmbH, which could potentially offer strategic opportunities for collaboration. The outcome of the discussions between Advent and Oman, as well as the potential impact on OQ Chemicals, remains to be seen.