Hospital beds firm LINET may agree stake sale in first half of 2019 - founder
14/12/2018 10:07
PRAGUE, Dec 14 (Reuters) - European hospital and nursing bed
maker LINET Group is in talks with three or four bidders over
the potential sale of a stake and could wrap up a deal in the
first half of 2019, the company's founder and main shareholder
said.
Zbynek Frolik, who holds a 33 percent stake in LINET, told
Reuters the company was under no pressure to sell a stake but
sought fresh investment to fund growth or acquisitions.
Frolik started LINET in 1990 and has grown it into a global
player in more than 100 countries.
He said discussions remained over the company's valuation,
which he saw at around 550 million euros ($621 million), or 11
times expected earnings before interest, tax, depreciation and
amortisation (EBITDA).
It was not decided if a minority or majority stake would be
sold, he said on the sidelines of a conference this week.
"The process is in progress and maybe in the next half a
year we can finish," Frolik told Reuters.
He said two of the bidders seemed to show greater interest
than the others.
"We could do in principle nothing because we are satisfied
with our performance," he said. "The target is to grow faster in
order to be closest to the biggest companies in the United
States and Japan."
LINET competes with the likes of Paramount Bed Holdings
7817.T of Japan and U.S. group Stryker SYK.N .
It started talks on a potential sale a year ago, with JP
Morgan advising.
Reuters has reported buyout groups Advent and CVC are among
bidders, while Czech financial newspaper Hospodarske Noviny said
last month that Chinese group Sino-CEE Fund was bidding.
Frolik declined to comment on bidders.
A group of German shareholders hold a 50 percent share in
the Dutch-registered parent LINET Group, which includes
German-based bed manufacturer Wissner-Bosserhoff.
LINET's sales reached 252 million euros and earnings before
interest, tax, depreciation and amortisation reached 38 million
euros, for fiscal year ending March 2018. The company aims to
grow sales organically to 400 million euros by 2020.
($1 = 0.8854 euros)
(Reporting by Jason Hovet; Editing by Mark Potter)
((jason.hovet@thomsonreuters.com; +420 224 190 476; Reuters
Messaging: jason.hovet.thomsonreuters.com@reuters.net))