Private equity giants including CVC Capital Partners, Bridgepoint and Charterhouse have expressed an interest in Spanish fragrance business Iberchem.
Although the sale process is currently only at the first-round offer stage, an eventual deal could value the company at around €400m (£347m), according to Reuters.
This would generate a welcome return for its current owners, Magnum Capital. The Iberian firm acquired Iberchem in 2013 for around €80m, according to local media at the time.
However, sources in the Spanish private equity market have told City A.M. that Magnum is now struggling to raise its latest fund, and needs to prove its mettle to investors by selling off some portfolio companies.
Iberchem, which is headquartered in Spain, makes fragrances for high-end perfumes and for industrial or functional use, such as in shower gel, cleaning products and air fresheners.
The business made revenues of €105m in 2015, according to Magnum, and exports to more than 100 countries.
CVC has also been named in connection with The Body Shop, which current owners L'Oreal put up for sale earlier this year.