* TPG in exclusive talks for Nordenia, sources say
* Seller Oaktree Capital after 600 mln eur
By Alexander Huebner and Simon Meads
FRANKFURT/LONDON, March 30 Buyout firm TPG is in
exclusive talks with Oaktree Capital to buy packaging firm
Nordenia International, people familiar with the process said,
as another so-called "secondary buyout" edges to a conclusion.
TPG [TPG.UL] and Oaktree [OAKCP.UL], the Los Angeles-based
private equity and distressed-debt investor, are locked in
intense discussions for the German flexible packaging maker, one
of the people said.
TPG saw off competition from north European buyout
specialist Triton and the private equity arm of German insurer
Allianz (ALVG.DE). Oaktree had been hoping the company would
fetch about 600 million euros ($810 million), sources previously
Nordenia makes flexible packaging, technical films and other
products for Tyson Foods Inc (TSN.N) meal kits, Nestle NESN.VX
cat food and components for Procter & Gamble (PG.N) diapers.
TPG declined to comment. Oaktree was not immediately
available for comment.
If successful, the sale of Nordenia would mark another
European secondary buyout -- one in which a private equity firm
buys a company from a rival.
As private equity dealmaking has returned, there has been a
swathe of such deals, including retailer Pets at Home and
healthcare businesses Ambea and Sebia. But some see secondary
buyouts inflating prices as buyout firms eager to spend piles of
committed capital chase a few quality assets.
Another source described the Nordenia sale process as
difficult, having seemingly stalled after parties put in
second-round bids in February.
TPG sealed 2009's largest leveraged buyout (LBO), with the
buyout of drug-sales data provider IMS Health Inc RX.N for $4
But the firm's dealmkaing in Europe has been muted. It
pursued British fashion retailer Matalan until the sale was
pulled in February. [ID: nLDE6192F0]
Greven-based Nordenia was founded in 1966. It employs more
than 3,000 staff and had turnover of 736 million euros in fiscal
2008, according to its website.
(Additional reporting Quentin Webb and Victoria Howley in
London; Editing by )