German industrial group GEA targets buyout bidders for €1.3bn unit sale

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German process technology group GEA is targeting private equity acquires as it look to sell its heat exchanger division for over €1.3bn, according to Reuters.

The report named buyout firms including Advent International, Blackstone Group, Cinven, CVC Capital Partners, First Reserve and Permira, while GEA has hired Deutsche Bank to explore a possible sale.

GEA is one of the largest suppliers of process technology and components for the food and energy industries. In 2012, GEA generated consolidated revenues in excess of €5.7bn. Its heat exchanger unit recorded revenues of €1.61bn in 2012, with EBITDA of €167m.

The division is expected to sell for between six and eight times EBITDA, the report said.

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