LONDON May 8 Private equity firm Clayton
Dubilier & Rice is in advanced talks to buy Germany-based
packaging group Mauser from Dubai International Capital (DIC)
for around 1.2 billion euros ($1.7 billion), banking sources
said on Thursday.
DIC bought Mauser from JP Morgan's buyout unit in
2007, in a deal which valued the firm at 850 million euros.
It decided to put the company up for sale earlier this year
in what will be one of the largest asset disposals by the
emirate since its debt crisis in 2009.
CD&R is close to finalising a deal after beating rivals
including Ardian in an auction process, the banking sources
CD&R declined to comment, while Mauser officials could not
immediately be reached for comment.
Banks are working on a syndicated loan of around 1 billion
euros to back the sale, or 6.25 times Mauser's roughly 154
million euros in EBITDA (earnings before interest, taxes,
depreciation and amortization).
The loan is likely to be covenant-light and a mix of dollars
and euros, split between first and second lien leveraged loans,
banking sources had said previously.
Founded in 1896 in a small town in southern Germany, Mauser
makes packaging equipment such as cans and drums for
transporting medical waste and other hazardous chemicals.
($1 = 0.7183 Euros)
(editing by Jane Baird)