(Reuters) – Goldman Sachs Group Inc’s private equity arm is nearing a deal to acquire events services company PSAV Presentation Services for close to $900 million, according to people familiar with the matter.
The deal for the company – currently owned by private equity firm Kelso & Co – could be announced as early as this week, one of the people said. Kelso acquired PSAV for $413.4 million in 2007.
PSAV is the largest provider of audiovisual services to the U.S. hotel industry and helps coordinate events and meetings using high-definition projectors and plasma screens.
The Long Beach, California-based company has earnings before interest, tax, depreciation and amortization of between $130 million and $140 million, people have previously told Reuters.
A deal for Goldman would come after it changed the way it invests in private equity to comply with the so-called Volcker rule that is expected to limit investment bank investments in illiquid asset classes.
In a bid to pool money for deals without raising a private equity fund, the Wall Street bank has been underwriting the equity in deals and then lining up clients who are willing to put money into accounts set up to invest in them, people familiar with the matter said earlier this year.
A Goldman Sachs spokeswoman declined to comment. Kelso and PSAV did not immediately respond to requests for comment.