Carlyle Group Bids for Giannoni

(Reuters) – Private equity firm the Carlyle Group said it had made a fully-financed bid for Giannoni, the French maker of heat exchangers for energy efficient boilers.

The deal values the business at 490 million euros ($585.1 million), the Financial Times reported earlier on Monday, and will see Carlyle take a 65 percent stake in the business.

Giannoni co-founder Joseph Le Mer will retain a 35 percent stake in the business and continue as chief executive, Carlyle said in a statement.

Giannoni, established in 1993, makes stainless steel heat exchangers for makers of commercial and residential boilers in Europe and North America. Its products are designed to reduce energy consumption and costs, with the firm introducing several new products and patents so far this year.

“We are confident in the continued high growth potential of the company due to opportunities in growing markets, such as Eastern Europe and Russia, and new developments,” said Carlyle managing direct Benoit Colas in a statement.

Reuters LPC last month reported that sale adviser Rothschild has approached 11-12 banks to put together a 200 million to 250 million euro loan for the deal. 

An earlier auction to sell the company was pulled in April when offers failed to meet seller expectations. After that, Carlyle was granted exclusivity. (Reporting by Simon Meads; Editing by Louise Heavens) ($1=.8375 Euro)