RLPC-Bidders line up for Vion's ingredients unit
* Advent, CVC, Permira to submit second-round bids
* Trade buyers Saria, Darling International also in hunt
* Bankers prepare approx 1 bln euros of debt to back sale
By Claire Ruckin
LONDON, Aug 7 (Reuters) - The sale of Dutch meat producer Vion's ingredients division has attracted a clutch of bidders, with private equity firms and trade buyers making it through to the second round of an auction process, banking sources said on Wednesday.
Owned by ZLTO, a Dutch agricultural and horticultural association, Vion is looking to cut debt and hired Bank of America Merrill Lynch to run the sale, which could fetch between 1.4 billion euros ($1.86 billion) and over 2 billion euros.
Private equity firms Advent, CVC and Permira are among bidders to have made it through to the second round of an auction process due at the end of September, five banking sources said.
Two of the sources said that trade buyers, Vion Ingredients' peers German-based Saria and U.S.-based Darling International , were also potential buyers.
Advent, CVC and Permira declined to comment. Saria and Darling were not immediately available to comment.
"There has been good interest from potential buyers in the company. We expect to be able to communicate about the buyer before the end of the year," Vion spokesman Marc Van Der Lee said.
Bank of America Merrill Lynch has put together a financing package which would be available to the successful bidder, which give would-be buyers confidence that funds are available to back a buyout. The package is about five times Vion Ingredients' approximate 200 million euros earnings before interest, taxes, depreciation and amortisation (EBITDA), three of the banking sources said.
Financing is expected to include leveraged loans and high yield bonds, denominated in euros and dollars, they said.
Rival banks are also preparing debt packages to offer potential buyers of a similar level at around 1 billion euros, the three sources added.
Vion Ingredients employs 6,000 staff and produces gelatine, proteins and fats from slaughterhouse by-products which are then sold to the pharmaceutical, cosmetics, food, feed, energy and technology sectors, according to Vion's website.
- WTO overcomes last minute hitch to reach its first global trade deal
- Colorado baker discriminated by denying gay couple wedding cake: judge
- Flights delayed as air pollution hits record in Shanghai
- U.S. freeze shows no sign of weekend melt after deadly storm
- Australia foreign minister downplays China air defense zone tension in visit