FRANKFURT Private equity group Carlyle (CG.O) has entered exclusive talks to buy family-owned German wood processing group Klenk Holz AG and hopes to clinch a deal this month, two people familiar with the deal said on Wednesday.
German private equity firm Orlando has also expressed interest in buying the unprofitable group, which has annual sales of 387 million euros ($511.55 million) and 1200 staff, the sources added, speaking on condition of anonymity as the deal is private.
Klenk Holz said that talks with an unnamed investor were being finalized, while Carlyle declined to comment and Orlando was not immediately available.
The sale is part of a revamp that Klenk Holz launched as it struggled with increasing wood prices as well as growing competition from Scandinavian rivals.
($1 = 0.7565 euros)
(Reporting Alexander Huebner; Writing by Arno Schuetze; Editing by Marilyn Gerlach and Louise Heavens)