Montagu Private Equity, a European mid-market investor, is close to selling Stabilus, a German producer of gas springs used in automotive and industrial applications, for upwards of EUR 500m (US$727m).
Paine, a San Francisco and New York-based private equity house, was reported by Financial Times Deutschland to have entered talks with Montagu to buy the business, which it acquired from German crane maker Demag, owned by US-based LBO firm Kohlberg Kravis Roberts and Siemens, in August 2004.
According to the report, Montagu paid approximately EUR 530m for the asset, although the transaction price was undisclosed at the time. If so, this would suggest a loss on the investment for Montagu, although it is unclear whether a refinancing or partial sale has been carried out since the original transaction in 2004.
Montagu was not immediately available for comment.
Last week, Montagu acquired UK waste management business Biffa with partner Global Infrastructure Partners for approximately Gbp1.231bn.