Buyout group Ardian has won the bidding for German residential and technical lighting products maker SLV, people familiar with the matter said.
Ardian beat off bidders such as 3i, Triton, Pamplona and Lone Star, the sources said, adding that the deal will likely be announced later this week.
One person close to the deal said that Ardian’s offer had been expected to value SLV at less than 800 million euros including debt. The buyout will be backed with an all senior loan financing of about 360 million euros or 5.5 times SLV’s expected core earnings, according to bankers.
SLV is expected to post earnings before interest, taxes, depreciation and amortization of about 65 million euros this year.
Ardian and Cinven declined to comment.
SLV is benefiting from strong construction activity in Germany and other countries and from regulations pushing energy-efficient technologies like LED lamps.
The group was set up in 1979. Since being acquired by Cinven, it has invested in logistics sites and bought Swiss LED lighting fixtures maker Unex.