RLPC-Bartec $750mln sale draws trade and PE interest

LONDON, July 5 Thu Jul 5, 2012 11:24am EDT

LONDON, July 5 (Reuters) - Swiss buyout group Capvis has attracted a number of potential buyers in the sale of its German industrial safety tools producer Bartec, which is expected to fetch around 600 million euros ($750.60 million), banking sources said on Thursday.

Commerzbank is leading the sales process which had attracted a large field of suitors and a number of these have made it through to the next round of bidding in mid-July. These include buyout houses Charterhouse, Clayton Dubilier & Rice, EQT and Permira as well as trades buyers Ametek, Danaher and Honeywell, banking sources said.

The top three will make it through to the final round of bidding expected early next month, bankers added.

Capvis was not immediately available to comment.

Bartec has had strong profit growth at a time of economic turmoil and has focused on essential areas of safety for oil and gas producers. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) has grown around 16 percent in 2012 to around 58 million euros, up from 50 million euros last year, bankers said.

Bankers are putting together debt packages of around 300 million euros to back a buyout should the company go to a private equity bidder. The financing is likely to include senior and mezzanine leveraged loans.

Capvis bought Bartec from Allianz Capital in 2008 backed by 205 million euros of debt, according to Thomson Reuters LPC data. Bartec, which was founded in 1975, makes safety systems designed to prevent explosions in hazardous areas of oil and gas production.

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