(Reuters) Buyout groups IK and Nordic Capital are vying for Germany-based wheelchair maker Sunrise Medical in a potential 450 million euro ($507 million) deal, two people familiar with the transaction said.
Private equity group Equistone, formerly known as Barclays Private Equity, has allowed the two investors as well as a family office — a vehicle handling the assets of a wealthy family — to submit final bids ahead of an end-May deadline, they added.
Sunrise Medical makes wheelchairs under brands including Sopur, Quickie and Zippie and competes with groups like Invacare and Permobil, a former Nordic Capital investment.
Sunrise is expecting to post earnings before interest, taxes, depreciation and amortisation (EBITDA) of roughly 50 million euros in its fiscal year ending June and may be valued at about 9 times that.
Bankers are preparing debt packages of up to 300 million euros for the buyout.
Equistone acquired Sunrise Medical, which has annual sales of more than 350 million euros, from U.S.-based private equity firm Vestar Capital Partners in 2012.
Equistone, IK, Nordic, as well as sellside adviser Macquarie all declined to comment.