BC Partners hires banks for $1.3 bln OVS listing, say sources-Reuters

(Reuters) – European private equity firm BC Partners has appointed Bank of America Merrill Lynch and Goldman Sachs to run the listing of its OVS Industry fashion chain, several sources familiar with the matter said on Monday.

OVS, which sells affordable high-street clothes and accessories, will be carved out of Italian retailer Gruppo Coin and listed on the Milan’s Stock Exchange in autumn, one of the sources said.

BC Partners purchased Gruppo Coin for a multiple of almost 7 times its core earnings in 2011. A similar multiple would give OVS a valuation of 952 million euros ($1.3 billion).

The chief executive of Gruppo Coin has previously said that OVS would have a free float of at least 30 percent and would be spun off by the end of the year. Lazard has been retained as OVS’ financial advisor.

The initial public offering comes at a time when a series of Italian stock market listings including gaming firm Sisal have been scrapped as investors’ confidence wanes.

In 2013, OVS reported earnings before interest, tax, depreciation and amortisation (EBITDA) of 136 million euros on revenue of just under 1 billion euros.

BC Partners declined to comment. Bank of America and Goldman Sachs were not available for immediate comment.

Gruppo Coin was Italy’s largest clothing retailer when it was delisted in 2011 after private equity firm BC Partners bought it in a deal worth 1.4 billion euros including debt.