KKR Nears Deal for Capital Safety

Private equity group KKR & Co. is about to secure a deal to buy Capital Safety Group, a British manufacturer of safety equipment to protect against falls, for about $1.1 billion, Reuters reported Monday. Capital Safety Group is currently owned by Arle Capital Partners.

(Reuters) – Private equity group KKR & Co is about to secure a deal to buy Capital Safety Group (CSG), a British manufacturer of safety equipment to protect against falls, for about $1.1 billion, a source familiar with the matter said on Monday.

An agreement with the target company’s owners, Arle Capital Partners — the former buyout arm of Candover Investments — could be announced as early as Monday, the source said. KKR declined to comment.

One of the high-profile private equity victims of the credit crunch, Candover last year decided to wind itself up, retaining a small amount of cash for follow-on investment in its portfolio companies.

Candover acquired Milton Keynes-based CSG from Electra Private Equity in 2007 for $565 million. Cinven and Warburg Pincus were among the buyout firms that looked at taking over CSG recently, the Financial Times reported last month.