Three private equity groups shortlisted in Xella sale - sources

H+H International A/S

21/10/2016 11:25

FRANKFURT, Oct 21 (Reuters) - Bain, Apollo and Lone Star 
have been shortlisted in the sale of building materials maker 
Xella, a potential 2 billion euro  ($2.18 billion) deal, 
according to several people close to the transaction. 
    The three private equity groups have been asked to produce 
final bids in coming weeks, the people said. 
    Bankers close to the deal said they were working on debt 
financings of around 1.5 billion euros or 5.5 times Xella's 
annual core earnings of 270 million euros. 
    Xella's owners - PAI Partners and Goldman Sachs'  GS.N  
investment arm - are hoping to sell the group at an expected  
valuation of eight times core earnings, sources close to the 
deal have said in the past. 
    Listed sector peers such as Wienerberger  WBSV.VI , Braas 
Monier  BMSA.DE  or Etex  BE0941244536.BR  trade at roughly six 
to seven times their expected core earnings.  
    The private equity groups and Xella's owners declined to 
comment.  
    An attempt to float Xella, whose brands include Ytong, Hebel 
and Silka, on the stock exchange failed last year. 
($1 = 0.9179 euros) 
 
 (Reporting by Claire Ruckin, Alexander Hübner and Pamela 
Barbaglia; editing by Susan Thomas) 
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters 
Messaging: arno.schuetze.reuters.com@reuters.net)) 
 
Keywords: XELLA SALE/