FRANKFURT/LONDON Aug 14 Strategic Value
Partners (SVP) is targeting other private equity firms as
potential buyers of its German plastic films maker Kloeckner
Pentaplast, three sources familiar with the deal
SVP bought Kloeckner Pentaplast, whose films are used to
package foods and medicines, from Blackstone last year.
Blackstone had bought the company from Cinven in 2007, backed by
1.25 billion euros ($1.65 billion) of leveraged loans.
Goldman Sachs and Jefferies, advisers to SVP
and the co-owners, will start sending out information packs on
Kloeckner Pentaplast in September, the sources said. The company
has been struggled with rising raw materials costs as well as
high leverage at about 10 times core earnings.
The two banks are expected to also offer financing options
for the deal, one of the sources said.
Tentative bids, which are seen valuing the company at about
1 billion euros ($1.3 billion), are likely to come in by late
October, a second source said.
Kloeckner Pentaplast will be offered to firms such as One
Equity Partners, 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, they said.
SVP and junior lenders acquired Kloeckner Pentaplast in 2012
following a lengthy restructuring process for 190 million euros
in equity as well as 650 million euros in loans from Jefferies.
Kloeckner Pentaplast has annual sales of about 1.5 billion
euros and more than 3,000 staff. In the twelve months to March
2013 it posted adjusted earnings before interest, taxes,
depreciation and amortisation of 167 million euros.
Kloeckner Pentaplast, founded in 1965 as a unit of steel and
machinery group Kloeckner-Werke, also makes pipe insulation and
products to refine stationery products.
SVP, Kloeckner Pentaplast, the private equity investors and
Perlen declined to comment, while Bilcare and Mondi were not
immediately available for comment.