(Reuters) – Four banks have lined up around 480 million euros ($583.54 million) of debt financing to back US-based private equity group Bain‘s acquisition of German elevator components maker Wittur, banking sources said on Tuesday.
Bain agreed to buy Wittur from private equity groups Triton and Capvis, the companies announced on Dec. 23, in a deal that valued Wittur close to 600 million euros.
Credit Suisse, Barclays, Deutsche Bank and RBC have provided a debt financing to back the buyout, which comprises around 220 million euros of term loans and around 200 million euros of high yield bonds. There is also expected to be around 60 million euros of undrawn loans, the banking sources added.
The deal is expected to launch for syndication to investors in January.
The financing totals around 6 times Wittur’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately 70 million euros, banking sources said previously.
Bain declined to comment.
Founded in 1968, Wittur’s products include lift machines, elevator doors, hydraulic devices, safety components, gearless drives and slings. Customers include Kone, Otis and Schindler.