3i Selling German Companies for $1.3 Billion

(Reuters) – British private equity group 3i (III.L) is planning to sell two German companies for more than 1 billion euros ($1.32 billion), three sources told Reuters on Friday.

The investor is looking into an initial public offering of Norma Group, which is to take place in several steps starting in summer 2011, one of the sources said.

3i hopes to get more than 800 million euros for the maker of metal and plastic engineered joining products and has asked Rothschild to organise the listing, the source added.

The Financial Times reported on Friday that 3i sees the enterprise value of Norma at about 700 million euros.

3i bought Norma, which expects a turnover of over 430 million euros in 2010 and has 3,400 employees worldwide, five years ago for 200 million euros.

Separately, 3i is preparing an auction for engine maker Motoren-Werke Mannheim (MWM), formerly known as Deutz Power Systems, which could start late this year, another source said.

Credit Suisse (CSGN.VX) is advising 3i on the sale of MWM, which could fetch about 500 million euros, the source added.

3i bought MWM, which employs 1,100 people, for 360 million in 2007.

The private equity group and the investment banks declined to comment.

($1=.7577 Euro)

(Reporting by Philipp Halstrick and Arno Schuetze; Editing by Erica Billingham)