Barclays Private Equity wants a financing package in place before auctioning off its tax-free shopping company Global Blue, Reuters reported Thursday. The company is expected to fetch as much as 600-700 million pounds ($800 million-$1 billion), and has seen interest from several private equity firms, Reuters says. Barclays hired JP Morgan and Evercore to run the sale process.
(Reuters) – Barclays Private Equity is looking to put a financing package in place before going to auction for the sale of its tax-free shopping company Global Blue, bankers told Thomson Reuters LPC on Thursday.
Barclays PE, part of Barclays Plc, has appointed JP Morgan and independent investment banking advisory firm Evercore to run the sales process, which is already gaining interest from a number of private equity buyers, the bankers added.
The company could fetch around 600-700 million pounds ($800 million-$1 billion), a source close to the deal said.
However, before the company goes to auction, sellside wants financing arranged in advance for prospective buyers, known as a staple, the bankers added.
The staple, which is in its early stages, will seek to put a group of banks together to provide a debt package, the bankers said.
Staples are gaining more traction recently as companies want assurance that financing can be raised for an acquisition amid volatile economic conditions. A number of sales have been pulled in recent months, in part because of frozen financing markets.
French retail group PPR postponed the sale of its catalogues business Redcats in September. Rothschild, which had been hired to run the sale process, was unsuccessful in its attempts to put a staple finance package together, two sources close to the deal said.
A staple finance is also being put together for the sale of Orange Switzerland by France Telecom as well as AAC Capital Partner’s sale of ventilation and heating systems manufacturer and supplier Volution and Cognetas’s sale of petrol station equipment provider Tokheim.
Barclays PE declined to comment. ($1 = 0.751 Euros) ($1 = 0.648 British Pounds) (Reporting by Claire Ruckin; Editing by Will Waterman)