LONDON (Reuters) – Private equity sponsor Montagu Private Equity has appointed Sal. Oppenheim to advise on the possible sale of German sausage casings maker Kalle Nalo, bankers familiar with the situation said on Monday.
The sale process is not expected to begin until 2009, they added.
“The M&A advisers are trying to warm up the banks but this is a 2009 transaction if at all. You need someone willing to meet the sale price expectations and then you need to get financing,” one banker said.
Raising loans for acquisitions remains challenging before the end of the year and beyond as banks continue to reduce assets for year-end reporting, though mid=market sales are more likely to attract financing from clubs of relationship banks, one banker said.
Sponsor Montagu Private Equity is looking to exit the business after having held the company over the past four years, one banker said.
Montagu could not immediately be reached for comment.
CVC Capital Partners sold Kalle Nalo to Montagu in 2004 for an undisclosed price, backed by a leveraged loan from Mizuho. The loan included 120 million euros of senior debt and 20 million euros of mezzanine debt.
Before being acquired by CVC, Kalle was a subsidiary of German chemicals firm Hoechst.
Kalle produces artificial sausage casings out of viscose, plastic and textiles. The company also manufactures sponge cloths.
(Reporting by Zaida Espana, editing by Will Waterman)