| LONDON, Sept 21
LONDON, Sept 21 Blackstone, Carlyle
and Cinven are among those through to the next round of
bids to buy Dutch trust and corporate management business
Intertrust Group from Private equity firm Waterland, bankers
said on Friday.
The sale, run by ING, has attracted a number of private
equity buyers and second round bids are due next month after
tentative bids for the company were received on September 12
, banking sources said.
US buyout house General Atlantic - which part-owns industry
rival Citco - is also thought to have joined the second round.
Bankers are putting together debt packages of between 400
million euros ($518.08 million) and 500 million euros to back a
buyout, bankers said.
Bridgepoint, CVC, 3i, Goldman Sachs Private Equity
and Pamplona all looked at the company in the early stages of
the process, the sources added.
Blackstone and Cinven were not immediately available to
comment and Carlyle and General Atlantic declined to comment.
Those through to the next round of the auction process will
be given access to Intertrust Group's data and sellside due
diligence and will be in talks with banks to get committed debt
financing in place before bids are due in October, bankers said.
The financing could either be through all-senior leveraged
loans, which would give the deal a leverage of around 4.5 times
the company's approximate 75-80 million EBITDA, or could include
mezzanine debt as well, which would bring leverage on the deal
to around 5.5 times EBITDA, bankers said.
Mezzanine lenders have already spoken to the company's
management regarding the supply of debt.
"There are different financial packages that will be put
together varying from sponsor to sponsor. It will attract a lot
of interest as it is a good business with high cash conversion
and a strong management team," a banker said.
Waterland bought Intertrust in September 2009, backed with
around 140 million euros of debt. It acquired Walkers Management
Services (WMS) earlier this year, at which point the company
refinanced its debts and got an additional acquisition loan,
bringing Intertrust's total debt to 250 million euros.
Founded in 1952, Intertrust has more than 1,000 employees in
over 20 countries worldwide. Its core business is to set up and
manage holding companies, Waterland said on its website.