PPM Ventures, the private equity arm of insurance company Prudential, is set to buy out Lonzas Polymer Intermediates Business from Lonza Group, the Switzerland-based specialty chemicals company.

Lonza is selling its polymer intermediates unit and its energy business as part of its strategy to focus on the life sciences sector, and expects the combined sales proceeds to exceed Sfr1bn (€679m). It has an agreement in principal with PPM Ventures regarding the sale of the polymers business, and the deal is expected to be finalised over the next few weeks. The purchase price will be approximately 5.8 times historical earnings before interest, tax, depreciation and amortisation (Ebitda).