Middle-market private equity firm Equistone Partners Europe Ltd. has engaged financial advisers to assist with a sale process for German specialty chemicals maker United Initiators GmbH & Co. KG, three sources familiar with the process said.

Equistone has engaged Evercore Inc. to run the auction, which is expected to attract interest from other European PE firms, as well as some European and multinational strategics.

United Initiators, which makes organic peroxides, persulfates and hydrogen peroxide used in renewable energy, coatings, adhesives, energy efficiency, construction and disinfection applications, generates around $60 million of run-rate Ebitda, two of the sources said.

Deals for specialty chemicals companies have on average been trading in the low double digits over the past several months, and have on occasion crept into the low- to mid-teens.

But bankers have become skeptical in the past few weeks over whether prices will remain as high, and whether as many processes will be successful, during the next few months as the traditional financing market has tightened.

Among logical candidates for strategic bids, sources pointed to W.R. Grace & Co., Frances’ Arkema SA, Carlyle Group Inc. (CG) and GIC Pte. Ltd. platform Nouryon Holding BV and Germany’s Lanxess AG.

Editor’s note: The original version of this article was published July 8, 2022, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.