Carlyle Group Revives IPO for Nouryon: Private Equity Giant Eyes Big Move in Specialty Chemicals

Carlyle Group Inc. is bringing back its plans for an initial public offering (IPO) of Nouryon, a specialty chemicals company. According to sources familiar with the matter, this move comes as private equity firms globally prepare for a comeback in stock market listings.

Carlyle has reportedly asked investment banks, including Barclays Plc and Goldman Sachs Group Inc., to help prepare for an IPO in New York, which could happen as early as 2025. Nouryon, which makes chemicals for agriculture, paints, coatings, and personal care products, could be valued at around €13 billion ($14.5 billion) if listed, according to insiders.

No final decisions have been made yet, and the details, such as the timing and size of the IPO, could change. Representatives from Carlyle, Barclays, and Goldman Sachs declined to comment, while a spokesperson for Nouryon did not respond to requests for a statement.

Carlyle, along with Singapore’s GIC Pte, originally bought Nouryon from Akzo Nobel NV in 2018 for €10.1 billion, making it Carlyle’s biggest deal in Europe.

Additionally, Carlyle is considering selling Nobian, a company spun out of Nouryon in 2021. Nobian produces chemicals like salts and chlorine used in solar cells, electric vehicles, and insulation materials. Carlyle is working with advisers on this sale process, and the Financial Times first reported on the plan in August.

Private equity firms are hoping for a better environment to exit their investments, as recent years have seen dealmaking slow due to rising interest rates and valuation issues. A potential rate cut by the Federal Reserve later this month could create a more favourable market for IPOs.