Prati Management
Long/short equity, value, special situations, contrarian

Trinseo - Compelling Price, Bain Capital Pedigree, And Excellent Risk/Reward

Trinseo S.A (NYSE:TSE) is a global chemicals business that Bain Capital took public in June of last year after having acquired the business from Dow Chemical in 2010. Bain did not sell any stock in the IPO and all proceeds were used to repay debt. Having already been priced at a discount to its global peers due to its substantial exposure to Europe, the stock has fallen a further 21% on the back of continued negative European macroeconomic news flow. While the headline multiples are already very attractive, the valuation becomes extreme once I normalize for the abnormally high capital expenditures the company is incurring over the next 24 months. While some of the higher capital expenditures are

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