IK Investment receives bids for Schenck Process -source
FRANKFURT, July 9 |
FRANKFURT, July 9 (Reuters) - Private equity firm IK Investment has chosen four bidders to submit second-round offers for factory equipment maker Schenck Process next month, a person familiar with the situation said.
Three private equity groups including Bain Capital and Rhone Capital as well as one strategic player from Asia survived the first round, said the source, which is close to one of the suitors.
Final bids will be due in September.
The expected price tag for the German industrial weighing specialist is expected to be 700-800 million euro ($860-985 mln), which would be about 9 to 10 times the 80 million euros in expected 2012 earnings before interest and taxes, the source added.
Schenck, which makes factory gear to weigh, filter or dose substances, caters to several industries including cement and chemicals makers and miners.
Schenck was acquired by IK from private equity investor HgCapital in 2007 and IK combined the business with three acquisitions since then.
At the time, IK paid about 450 million euros, according to a financial source.
Morgan Stanley is running the sales process for the group that has 3,000 employees world wide and generates annual sales of more than 560 million euros.
IK Investment, Schenck and the private equity investors declined to comment.
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