(Adds financing details)
PARIS Dec 5 French private equity firm Wendel said on Thursday that its building materials business Materis is in exclusive talks to sell calcium aluminates maker Kerneos to buyout firm Astorg Partners for 610 million euros ($827 million).
The deal, which represents a multiple of 8.4 times earnings before interest, tax, depreciation and amortisation (EBITDA) over the 12 months to Sept. 30, could be finalised in 2014 after consultation with employee representative bodies and subject to regulatory approvals.
Materis would use the proceeds of the sale to reduce debt, Wendel said.
Goldman Sachs is leading the debt financing, as a sole bookrunner, which will back Astorg Partners' buyout of Kerneos. The financing will be in the form of a bridge loan that will be taken out via the high yield bond market next year, banking sources said.
Paris-based Kerneos made a profit at the EBITDA level of 73 million euros on sales of 366 million euros in the year ended Sept. 30.
It has 1,200 employees and 10 production sites in France, Britain, China, the United States, Brazil and South Africa. ($1=0.7377 euros) (Reporting by Dominique Vidalon in Paris and Claire Ruckin in London; Editing by David Goodman, Greg Mahlich)