Bain Capital to sell or list clutch maker FTE - sources (updated)

SCANDINAVIAN BRAKE SYSTEMS Under frivillig likvidation A/S

28/10/2015 16:16

* Bain retains Rothschild to look into options for 
FTE-sources 
    * Bain hopes to raise 650-750 mln euros from sale-sources 
    * Germany's auto components suppliers have seen wave of 
deals 
 
 (Adds car parts industry background) 
    By Arno Schuetze 
    FRANKFURT, Oct 28 (Reuters) - U.S. buyout group Bain Capital 
is preparing to sell or float car parts maker FTE Automotive 
 PAIPRF.UL  to take advantage of high sector valuations, two 
people familiar with the matter said.  
    After receiving expressions of interest from Asian groups, 
Bain asked Rothschild  ROT.UL  to sound out options for the 
clutch and brake-systems maker including a sale or initial 
public offering which could take place as early as mid-2016, the 
sources said. 
    Bain and Rothschild declined to comment. 
    Bain bought FTE in 2013 for 400 million euros ($443 
million)and is hoping to raise 650-750 million from a sale of 
the group, the sources said, while potential bidders may only 
offer to pay 500-600 million.  
    According to a 2013 bond prospectus, FTE posted adjusted 
earnings before interest, taxes, depreciation and amortisation 
of 71.4 million euros in the year ended March 31, 2013 on 
revenues of 434 million.  
    The company, which supplies groups like Volkswagen 
 VOWG_p.DE , General Motors  GM.N , Ford  F.N , PSA  PEUP.PA  
and Daimler  DAIGn.DE , has since grown strongly, thanks partly 
to the acquisition of a unit of Scandinavian Brake Systems 
 SBS.CO  in 2014.  
    Germany's auto components suppliers have seen a wave of 
merger and acquisition deals over the last year as the 
industry's leaders seek to expand their product portfolios, 
driving up valuations. 
    In recent months in Germany, Mann + Hummel bought U.S. peer 
Affinia  AFN.N , Canada's Magna bought Getrag and Mahle acquired 
U.S.-based Delphi's  DCLC.UL  air-conditioning unit. 
 ID:nL5N10S1WA  ID:nL4N0ZW3MX  ID:nL5N0VT1OY  
    Currently, supplier groups like Tekfor and Schlemmer are up 
for sale, while Edag and Jost are preparing initial public 
offerings. urn:newsml:reuters.com:*:nL8N12S3TO  
    Fahrzeug Technik Ebern or FTE, originally a part of bearings 
maker FAG, was bought in 1993 by British group Echlin, which was 
later acquired by U.S.-based Dana. In 2002, private equity firm 
HgCapital acquired FTE and sold it on to peer investor PAI in 
2005.  
($1 = 0.9037 euros)     
 
 (Additional reporting by Robert Smith and Freya Berry; Editing 
by Ludwig Burger and Adrian Croft) 
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters 
Messaging: arno.schuetze.reuters.com@reuters.net)) 
 
Keywords: BAIN FTE AUTOMOTIVE/SALE