Plastics Maker Trinseo Files for $400 Million IPO
The Associated Press reports that a former division of Dow Chemical Co. acquired by private equity firm Bain Capital a year ago, wants to return to the public markets. Dow Chemical sold the plastics unit, then called Styron, to Bain for $1.63 billion in June 2010. It kept a 7.5 percent stake. The company, which is renaming itself Trinseo, hopes to raise up to $400 million in its initial public offering. In a regulatory filing, the company didn''t say when it planned to sell its stock, what price it would ask for shares or how many shares would be sold. The proceeds from the IPO will be used to repay debt and pay fees to Bain Capital. The company makes latex, synthetic rubber and other kinds of plastics for many industries, including makers of tires, paper and packaging, consumer electronics and carpets. In the first three months of the year, Trinseo posted a net loss of $9.3 million on revenue of $1.54 billion. A year ago, as part of Dow Chemical, the division had net income of $48.7 million on revenue of $1.07 billion.