UPDATE 1-France's Materis in talks to sell Kerneos for 619 mln euros

Thu Dec 5, 2013 2:27am EST

(Adds details from statement)

PARIS Dec 5 (Reuters) - French private equity firm Wendel said on Thursday that its building materials business Materis is in exclusive talks to sell calcium aluminates maker Kerneos to buyout firm Astorg Partners for 610 million euros ($827 million).

The deal, which represents a multiple of 8.4 times earnings before interest, tax, depreciation and amortisation (EBITDA) over the 12 months to Sept. 30, could be finalised in 2014 after consultation with employee representative bodies and subject to regulatory approvals.

Materis would use the proceeds of the sale to reduce debt, the Wendel statement said.

Paris-based Kerneos had sales of 366 million euros and EBITDA of 73 million euros over the 12 months to Sept. 30.

It has 1,200 employees and 10 production sites in France, Britain, China, the United States, Brazil and South Africa. ($1 = 0.7377 euros) (Reporting by Dominique Vidalon; Editing by David Goodman)