(Adds detail, background)
STOCKHOLM, March 17 Swedish private equity firm
Ratos has appointed Carnegie and Handelsbanken to
advise it on a listing or sale of window and door maker Inwido,
its biggest holding, two people familiar with the matter told
A listing would coincide with an expected post-financial
crisis upturn for residential construction in Sweden, Inwido's
largest market, and mark Ratos's first sizable divestment in
more than a year.
The sources declined to be identified as the process is not
public. Ratos, Carnegie, Handelsbanken and Inwido declined to
Inwido would add to a growing Swedish IPO pipeline as owners
scramble to list their holdings on the back of high equity
market valuation, with three IPOs since late 2013 ending a
drought of two and a half years.
Shares in toilet and bath maker Sanitec, which
made its bourse debut in December in the biggest Swedish IPO
since Ratos listed building products company Lindab in
2006, have outperformed the market by more than 20 percentage
points to date.
Contract drug maker Recipharm, debt-collection company
Lindorff and cable operator Com Hem are also considering IPOs,
sources have told Reuters.
Sanitec, Swedish kitchen maker Nobia and Danish
insulation materials business Rockwool, whose
earnings also depend on the construction market, have enterprise
values of about 10 times 2013 earnings before interest, tax,
depreciation and amortisation (EBITDA).
The same multiple applied to Inwido would value it at around
4 billion Swedish crowns ($627 million) including debt.
Inwido, which employs about 3,000 people, had EBITDA of 407
million Swedish crowns in 2013 on sales of 4.3 billion, mostly
in the Nordic region.
Ratos has owned Inwido since 2004, one of 18 holdings across
the Nordics with combined sales of 42 billion crowns last year.
($1 = 6.3803 Swedish Crowns)
(Reporting by Sven Nordenstam; Editing by Niklas Pollard and