(Bloomberg) -- HIG Capital is exploring a sale of Usalco in a deal that could value the specialty chemicals company at as much as $2 billion including debt, people with knowledge of the matter said. 

The private equity firm is working with advisers to gauge buyer interest in Baltimore, Maryland-based Usalco, according to the people, who asked not to be identified discussing confidential information. 

Deliberations are ongoing and there’s no certainty they’ll lead to a transaction, the people said. A representative for HIG declined to comment, while a spokesperson for Usalco couldn’t immediately be reached for comment. 

Usalco provides water-treatment chemicals for municipal and commercial customers in the US and operates more than 30 manufacturing and distribution facilities, according to HIG’s website. HIG invested in the business in 2020. 

The New York-based buyout firm is exploring a sale of Usalco at a time when peers in the private equity industry are prioritizing exiting portfolio companies and returning funds to investors. 

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