Cinven to sell German lighting group SLV in potential 800 mln eur deal -sources (updated)
09/05/2016 17:12
(Adds details on company, industry)
FRANKFURT, May 9 (Reuters) - Buyout group Cinven CINV.UL
is preparing to sell German residential and technical lighting
products maker SLV in a potential 800 million euro ($911
million) deal, three people familiar with the matter said.
The private equity investor has asked Goldman Sachs GS.N
to organise the sale which it plans to officially launch in the
second half of this year, the sources said.
SLV is expected to post earnings before interest, taxes,
depreciation and amortisation of about 65 million euros this
year and may be valued at 12-13 times that, they said.
"A low double-digit multiple is realistic," one of the
sources said.
Cinven and Goldman Sachs declined to comment.
The buyout group will target other lighting products makers
as well as other private equity investors as possible buyers of
SLV, the sources said.
Europe's listed lighting manufacturers include Fagerhult
FAG.ST of Sweden, Beghelli BE.MI of Italy and Austria's
Zumtobel ZUMV.VI .
Cinven bought SLV from peer investor HgCapital for about 500
million euros in 2011. HgCapital had purchased it from SLV's
founder in 2007 for 320 million euros.
SLV is benefiting from strong construction activity in
Germany and other countries and from regulations pushing
energy-efficient technologies like LED lamps.
The group was set up in 1979. Since being acquired by
Cinven, it has invested in logistics sites and bought Swiss LED
lighting fixtures maker Unex.
In 2014, SLV reported sales of 157 million euros, more than
half of them in Germany, Austria and Switzerland. In the first
six months of 2015, sales increased by 8.3 percent, according to
the latest information available.
($1 = 0.8777 euros)
(Reporting by Arno Schuetze; Editing by Susan Fenton)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))
Keywords: CINVEN SLV/SALE