May 10, 2012 / 3:15 PM / 6 years ago

Montagu attracts offers for BSN Medical - sources

FRANKFURT, April 16 (Reuters) - Private equity firm Montagu has received tentative bids from several strategic and financial investors for its German bandages maker BSN Medical, several sources close to the transaction said.

Private equity groups EQT and Permira have placed bids, while investors CVC and BC Partners have made a joint offer, the people said.

BSN peer ConvaTec, which is owned by Nordic Capital and Avista Capital Partners, as well as rival Kimberly-Clark have also placed bids, they said.

The offers ranged from 1.6-1.8 billion euros ($2.1-2.3 billion), the sources said. “But those are political prices to stay in the running. I expect prices to come down in the final round,” one of the bidders said.

Montagu, on the other hand, is hoping to sell the maker of wound-care and orthopaedic products at an enterprise value of 1.9-2.0 billion euros, a person close to the investor said.

Final bids are expected in summer. “It is not going to be a very fast transaction,” one source said.

Montagu bought BSN for 1.03 billion euros in December 2005 and this is the third attempt by the buyout house to exit the company after it was forced to abandon a sale in 2008 due to the financial crisis. In 2010, a flotation valuing the company at as much as 2 billion euros failed.

BSN posted 2011 earnings before interest, taxes, depreciation and amortisation (EBITDA) of roughly 175 million euros.

Goldman Sachs and HSBC are working as sell side advisers.

Hamburg-based BSN was formed in 2001 as a joint venture between Smith & Nephew and Beiersdorf. When Montagu bought BSN in December 2005, it was backed by 755 million euros of debt, with an additional 155 million euros raised in add-on facilities in 2007, according to Thomson Reuters LPC data.

The companies and banks declined to comment.

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