UPDATE 2-Jarden's founder in talks to buy chemical maker MacDermid
Oct 10 (Reuters) - Platform Acquisition Holdings Ltd , founded by Jarden Corp chairman Martin Franklin, said it was in advanced talks to buy privately held specialty chemicals maker MacDermid Inc.
Franklin was planning to pay $1.8 billion, the Wall Street Journal reported earlier in the day, citing people familiar with the matter. ()
Shares of Platform Acquisition were halted on the London Stock Exchange on Thursday. They closed at 10.50 pence on Wednesday.
If completed, the acquisition would constitute a reverse takeover, Platform Acquisition said in a statement.
After the deal, Platform Acquisition will be renamed Platform Specialty Products Corp, its headquarters will be moved to the United States and its listing to the New York Stock Exchange, the Journal reported.
The deal is expected to be the first of several purchases of niche chemicals businesses by Franklin, reflecting the British-born businessman's interest in collecting and building businesses unrelated to the company he runs, the Journal said.
The deal, expected to close by the end of the year, will be funded through Platform Acquisition Holdings - a company Franklin founded with billionaire Nicolas Berggruen and took public on the London Stock Exchange in May, the Journal said.
Platform Acquisition's shareholders include sovereign wealth funds, hedge fund investors and William Ackman's Pershing Square Capital Management, which owns 28 percent of the company's ordinary shares, the Journal said.
Jarden supplies products ranging from Sunbeam electric blankets and Crock-Pots to Coleman camping gear and Marmot clothing to retailers such as Wal-Mart Stores Inc, Target Corp and Bed, Bath and Beyond.
Denver-based MacDermid makes specialized chemicals that are used in the manufacturing of cars and consumer electronics, and in the offshore drilling industry.
The specialty chemicals company was taken private for $1.3 billion in a management-led buyout in 2007. It generated about $740 million in revenue for the year to September, the Journal said.
MacDermid could not immediately be reached for comment by Reuters outside of regular U.S. business hours.
Story Copyright © 1999-2014 Reuters HedgeWorld All rights reserved.