Alternative investment firm Strategic Value Partners is looking to sell plastic film maker Kloeckner Pentaplast to other private equity firms a year after Blackstone ceded control of the then debt-heavy business.
SVP and its co-owners have hired Goldman Sachs and Jefferies to send out information packs on the business next month according to Reuters, which cited three sources with knowledge of the deal.
One of the sources said tentative bids, which could value the company at about €1bn, are likely to come in by late October.
The sources said buyout firms such as One Equity Partners, The Carlyle Group, Bain Capital and Advent International could be targeted.
SVP and a consortium of junior lenders picked up Kloeckner Pentaplast in 2012 in a deal which would see the group have to repay the company’s existing €800m of senior debt at par plus accruals.
In May Kloeckner priced €225m of senior PIK notes due in 2017, intending to use the net proceeds to partially refinance Preferred Equity Certificates issued during the takeover.
It said remaining proceeds would be used to fund general corporate purposes and pay transaction related fees and expenses, it said.
The company produces rigid plastic films for pharmaceutical, medical device, food, electronics, and general-purpose thermoform packaging, as well as printing and specialty applications and packaging solutions.
Founded in 1965 in Montabaur, Germany, the company has grown from its initial facility to 18 current global production facilities in 11 countries on four continents.
Kloeckner had annual sales of about €1.5bin euros and more than 3,000 staff according to Reuters.
It added that in the twelve months to March 2013 the business posted adjusted EBITDA of €167m.
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