(Reuters) – Private equity firm Clayton Dubilier & Rice is in advanced talks to buy Germany-based packaging group Mauser from Dubai International Capital (DIC) for around 1.2 billion euros ($1.7 billion), banking sources said on Thursday.
DIC bought Mauser from JP Morgan’s buyout unit in 2007, in a deal which valued the firm at 850 million euros.
It decided to put the company up for sale earlier this year in what will be one of the largest asset disposals by the emirate since its debt crisis in 2009.
CD&R is close to finalising a deal after beating rivals including Ardian in an auction process, the banking sources said.
CD&R declined to comment, while Mauser officials could not immediately be reached for comment.
Banks are working on a syndicated loan of around 1 billion euros to back the sale, or 6.25 times Mauser’s roughly 154 million euros in EBITDA (earnings before interest, taxes, depreciation and amortization).
The loan is likely to be covenant-light and a mix of dollars and euros, split between first and second lien leveraged loans, banking sources had said previously.
Founded in 1896 in a small town in southern Germany, Mauser makes packaging equipment such as cans and drums for transporting medical waste and other hazardous chemicals.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.