IK Investment mulls IPO of Schenck in Q2/Q3 -sources
FRANKFURT, April 18
FRANKFURT, April 18 (Reuters) - Private equity firm IK Investment plans to divest weighing specialist Schenck Process and is looking to either float it on the stock exchange or sell it to an investor in the European summer, two people familiar with the situation said.
"IK is running a dual track process, which could result in an initial public offering (IPO) or a trade sale late in the second quarter or at the beginning of the third quarter," one of the sources said on Wednesday.
The decision will depend on the price the investor can fetch, said the person, without giving a value of the expected transaction.
Another source said that "the longterm goal of Schenck's management is a flotation, but I would not rule out that in the short run another private equity investor scoops up the company."
Schenck was acquired by IK from private equity investor HgCapital in 2007 and has been strengthened by three acquisitions since. At the time, IK paid about 450 million euros ($591 million), a financial source said.
Morgan Stanley has been mandated to screen the market for possible buyers for the group that has 3,000 employees world wide and generates annual sales of more than 550 million euros.
IK Investment, Schenck and Morgan Stanley declined to comment. ($1 = 0.7610 euros) (Reporting by Arno Schuetze)