UPDATE 1-EQT aims for 2014 listing of bathroom firm Sanitec -sources

Tue Oct 1, 2013 7:34am EDT

* One source sees listing in H1 of 2014

* Listing could value company at EUR 850-900 mln

* Owner EQT abandoned sale last year (Adds quotes, details, background)

STOCKHOLM, Oct 1 (Reuters) - Swedish private equity firm EQT is planning a Stockholm stock market listing of bath and toilet maker Sanitec next year, three people familiar with the matter said.

Two of the people said UBS and Nordea are advising EQT on the listing, which would take place as the European construction market is seen turning the corner after a string of rough years due to the euro zone debt crisis.

"They're aiming for the first half year," one of the people said. The sources declined to be identified because the plans are not public. EQT, Sanitec, UBS and Nordea all declined to comment.

Sanitec makes ceramic products for bathrooms, such as toilets, bath tubs and wash basins and employs around 6,500 people. The firm has 18 production plants across Europe and makes brands such as Keramag, Twyford and Sphinx. It had sales of 753 million euros in 2012, almost all of it in Europe.

Building components firm Lindab, kitchen firm Nobia and heating specialist Nibe, which are listed in Stockholm and, like Sanitec, dependent on the fortunes of the European construction market, trade at around 8.5 to 9 times forward earnings (EBITDA) according to Starmine.

Assuming Sanitec's EBITDA remains stable at the roughly 100 million euros of the last two years and applying a multiple of 8.5 to 9 times would yield an enterprise value for Sanitec of around 850-900 million euros. Sanitec had net debt of around 200 million euros as of June 30.

Sanitec was hit by the economic downturn caused by the financial crisis, and in 2009 EQT gave up a stake in Sanitec to its lenders in return for a debt write-off.

EQT added 116 million euros of new equity at the same time, following an equity injection of 85 million euros in 2008. EQT owns 73 percent of Sanitec.

In Sanitec's latest report, CEO Peter Nilsson raised the possibility of a stock market listing, saying the firm's capital structure was consistent with a potential stock market flotation following a May bond issue which allowed Sanitec to repay debt and pay a dividend to its owners.

Last year, EQT tried to sell Sanitec in an auction which was aborted as bids did not match EQT's expectations. (Reporting by Sven Nordenstam; editing by Niklas Pollard and Jane Merriman)

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