By Sophie Sassard and Seda Sezer
LONDON/ISTANBUL, March 15 Family-owned Turkish
electric appliances maker Viko has hired Credit Suisse
to sell it in a deal likely to be worth between $500 million and
$1 billion, three people familiar with the matter said.
Viko's founders have decided to sell after being approached
by prospective buyers. They want to exit the business because
they haven't been able to find a successor within the family to
take it on, the people said.
They are hoping to fetch about $800 million based on a
valuation of 14 times earnings before interest, tax,
depreciation and amortisation (EBITDA), which is currently
around $60 million, said one of the people, who asked not to be
named because the talks are private.
Sector players such as France's Schneider Electric
and Legrand, Switzerland's ABB, U.S. rivals
Eaton and Hubbell and private equity firm KKR
are expected to show interest in Viko, the people said.
This is because Viko, whose products range from socket
outlets to building automation systems, has strong cash flows
and exposure to Turkey's growing economy, they added.
Viko and ABB could not be reached for immediate comment.
Credit Suisse, Legrand and Schneider declined to comment.
Bankers advising companies on merger and acquisition
strategies say mid-size deals involving privately-owned firms
are likely to represent a bigger share of dealmaking in 2013.
In Germany in particular, small-to-medium size companies
known as Mittelstand are likely to appeal to larger industrials
rivals, including Chinese and Japanese companies, bankers said.