UPDATE 1-SVP relaunches sale of Kloeckner Pentaplast sale - sources

Wed May 28, 2014 8:39am EDT

* Information 'teasers' to be sent out in June - source

* First bids likely to be due in July - source

* Deal could value Kloeckner at up to 1.5 bln euros - sources (Adds background on previous sale attempt, possible bidders)

By Arno Schuetze

FRANKFURT, May 28 (Reuters) - Investment firm Strategic Value Partners (SVP) is making another attempt to sell German plastic packaging maker Kloeckner Pentaplast in a potential 1.5 billion euro ($2 billion) deal, two sources familiar with the matter said.

Goldman Sachs and Jefferies Group, advisers to SVP and the co-owners, will start sending out information packs on the company next month, one of the sources said, adding that tentative bids are likely to be due in July.

SVP, Kloeckner Pentaplast, Goldman Sachs and Jefferies declined to comment.

SVP acquired Kloeckner Pentaplast, whose plastic films are used to package foods and medicines, from private equity firm Blackstone Group LP following a lengthy restructuring process. Blackstone had bought the company from Cinven in 2007, backed by 1.25 billion euros of leveraged loans.

An attempt to sell the company in autumn 2013 was put on ice after potential buyers indicated they would not meet the asking price of Kloeckner Pentaplast's owners.

Kloeckner Pentaplast will now mainly be marketed to private equity firms such as Carlyle, Bain and Advent but it remains unclear if these investors will actually hand in bids, the sources said.

The company could also make a strategic fit for industry peers such as India's Bilcare, Switzerland's Perlen or South Africa's Mondi, industry sources said.

The sellers are hoping to sell Kloeckner Pentaplast at an enterprise value of about eight times its expected earnings before interest, tax, amortisation and depreciation of roughly 180 million euros.

Bankers are working on debt financing packages of around 1 billion euros or six times Kloeckner's EBITDA. Syndicated leveraged loans and high yield bonds denominated in euros and dollars are all being considered, banking sources said.

In its fiscal year 2012/2013 ending in September Kloeckner Pentaplast posted an adjusted EBITDA of 174 million euros on sales of 1.2 billion euros. Its net debt decreased to 430 million euros.

In the six months to March 2013 adjusted earnings rose 6.7 percent.

Kloeckner Pentaplast, which was founded in 1965 as a unit of steel and machinery group Kloeckner-Werke, also makes pipe insulation and products to refine stationery products. It employs 3,100 staff at 18 production sites in 12 countries.

($1 = 0.7345 Euros) (additional reporting by Claire Ruckin in London; Editing by Victoria Bryan and Susan Thomas)

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