(Reuters) — Buyout group Clayton Dubilier & Rice (CD&R) is pressing ahead with preparations for a potential stock market listing in the United States of German packaging group Mauser and has picked banks to organise the transaction, two sources familiar with the matter said.
Bank of America and Citi have been mandated for the flotation, which may take place as early as autumn, they said, adding that the exact timing will depend on investor sentiment.
Turmoil in Greece has led several groups to delay planned initial public offerings (IPO), but there is confidence among equity capital bankers that markets will stabilise again soon.
CD&R only bought the German packaging group last year for around 1.25 billion euros ($1.40 billion) but is anxious to list the asset while stock market valuations are at a high level.
Other German groups like Ceramtec and Xella have also opted to launch IPOs this year to avoid missing the market opportunity.
CD&R bought Mauser from Dubai International Capital (DIC), which had acquired it from JP Morgan’s buyout unit in 2007 in an 850 million euro deal.
CD&R and the banks declined to comment while Mauser could be not reached for comment.
Mauser makes packaging equipment such as cans and drums for transporting medical waste and other hazardous chemicals. It has 4,400 employees and annual sales of 1.3 billion euros.
At the time of the sale to CD&R, Mauser’s earnings before interest, taxes, depreciation, and amortization were expected to reach 154 million euros in 2014. A more recent figure is not available.
Peers trade at 9 times their expected core earnings. If Mauser reaches a similar multiple in a potential IPO it would be valued at roughly 1.4 billion euros. ($1 = 0.8945 euros) (Reporting by Arno Schuetze; Editing by Ludwig Burger)