FRANKFURT, Oct 15 (Reuters) - Buyout group Ardian is preparing to sell French maker of chemicals used in food ingredients, fragrances and adhesives Les Derives Resiniques et Terpeniques (DRT) as it seeks to benefit from strong performance of the sector, sources said.
Ardian is working with Rothschild and Citi on the divestiture, which is expected to launch before year-end, the sources close to the matter said.
DRT, which produces ingredients derived mainly from pine trees, could be valued at up to 2 billion euros ($2.2 billion), one of the people added.
Ardian and the banks declined to comment.
The investor bought a controlling stake in DRT in 2017 at an enterprise value of about 1 billion euros.
DRT makes rosin used in adhesives, rubber, chewing gum and paint, turpentine used in fragrances and detergents as well as extracts for food supplements and cosmetics. It employs 1,350 people and has annual sales of 550 million euros.
According to global industry research reports, the flavours and fragrances market as well as the food ingredients market are going to grow by 5-6% in coming years, benefiting from rising middle classes and surging demand for processed food and cosmetics and toiletries.
In 2018, DRT recorded double digit growth in sales and earnings before interest, tax, depreciation and amortization.
$1 = 0.9076 euros Reporting by Arno Schuetze; Editing by Emelia Sithole-Matarise