June 13, 2018 / 12:06 PM / in 6 days

UPDATE 1-German car parts maker IFA Rotorion put up for sale - sources

* Potential 500 million euro deal

* Germany’s automotive supplier industry seen shakeup (Updates with details, background)

FRANKFURT, June 13 (Reuters) - German car parts maker IFA Rotorion has been put up for sale by its family owners in a potential 500 million euro ($588 million)deal, two people close to the matter said.

Investment bank Rothschild has been tasked with finding a buyer for the company, which makes propeller shafts and joints for carmakers in Europe, Asia and North America. It is expected to attract interest from rivals and private equity groups.

Rothschild declined to comment, while IFA and its family owners were not available for comment.

IFA employees around 3,000 people and last year posted sales of 650 million euros, making it one of the top 50 German automotive parts suppliers.

The company was expected to post earnings before interest, tax, depreciation and amortization of roughly 60 million euros this year and might be valued at about eight times that, the sources said.

The Haldensleben-based company has its roots in the firm IFA-Gelenkwelle, which was set up in 1959 in East Germany as a government-owned entity created through the merger of several machinery firms. It was bought by the entrepreneurial Nathusius family in 1992.

In 2009, IFA bought propeller shaft maker Rotorion from Daimler.

Germany’s automotive supplier industry has seen several ownership changes planned or completed in recent months.

Among others, China’s Ningbo Jifeng Auto Parts has said it aims to buy German rival Grammer , Continental is discussing carving out its car engine components business and Knorr Bremse is considering a stock market listing.

Most of the recent deals have been small, with the exception of the roughly $2 billion sale of auto parts distributor Stahlgruber to U.S. peer LKQ.

$1 = 0.8506 euros Reporting by Arno Schuetze Editing by Tom Sims and Edmund Blair

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