IK Investment Plans to Exit Sport Group

IK Investment is planning to sell German outdoor sport surface maker Sport Group, Reuters said, in a deal that could value the company as high as 250 million euros. IK Investment bought Sport Group in 2006 from funds advised by ECM. Sport Group installs artificial turf fields and tracks, including running tracks.

(Reuters) – Private equity firm IK Investment plans to sell German outdoor sport surface maker Sport Group, in a deal that could value the company between 200 and 250 million euros, several people familiar with the situation said on Monday.

Macquarie Group is running the sale process, the sources said.

Leveraged finance bankers are working on putting together debt packages to support another potential leveraged buyout (LBO) of the group as a number of private equity firms may be interested in submitting bids, the people said. First round bids are due imminently.

The debt to back a buyout could range between 160 million and 175 million euros, or around 4 to 4.25 times the group’s roughly 40 million euros earnings before interest tax, depreciation and amortisation (EBITDA), the people added.

IK Investment bought Sport Group in 2006 from funds advised by ECM. Sport Group installs artificial turf fields and tracks, including running tracks.

IK Investment declined to comment. (By Isabell Witt, Editing by Helen Massy-Beresford)