RLPC-Private equity firms call off sale of Denmark's KMD-bankers
LONDON, June 15 |
LONDON, June 15 (Reuters) - Private equity firm EQT and Danish pension fund ATP have given up on the sale of Danish IT group KMD after offers failed to meet price expectations, banking sources said on Friday.
The company was put up for sale earlier this year and attracted interested from private equity funds Nordic Capital and Advent International. But the process has now been pulled after bids fell short of the price tag of around 700 million euros ($881.8 million), banking sources said.
EQT and ATP bought KMD in 2008 for 2 billion Danish crowns ($339 million), backed by around 1 billion crowns of debt. Under the deal EQT acquired 85 percent of KMD and ATP got the rest.
At the time EQT and ATP said that they expected to own KMD for between three and seven years before looking to exit the company.
EQT declined to comment.
Bankers had been working on putting together a debt package to back a buyout of around 300 to 400 million euros, roughly 4.6 times the company's roughly 75 million euro EBITDA.
KMD works on the development, operation and maintenance of IT systems. It employs more than 3,200 people and has annual revenue of more than 3.8 billion crowns, according to the website.
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