British buyout group Terra Firma is launching the sale of German motorway service station group Tank & Rast in a potential 2 billion euro ($2.4 billion) deal, two people familiar with the matter told Reuters.
The private equity investment firm run by financier Guy Hands has asked Deutsche Bank and JP Morgan to explore options for the business including a sale or initial public offering, the people said.
Terra Firma was not immediately available for comment. Deutsche Bank and JP Morgan declined comment.
Terra Firma bought the group, which operates 350 gas stations and 390 service stations along German Autobahns, for 1.1 billion euros in 2004. In 2007, it sold a 50 percent stake to RREEF, a real estate and infrastructure-focused unit of Deutsche Bank’s asset and wealth management business.
Last year, Tank & Rast completed a 1.45 billion euro refinancing.
In 2013, the company posted earnings before interest, taxes, depreciation, and amortisation of 235 million euros on sales of 482 million euros.
Listed peers like Italian Autogrill, France’s Sodexo and Elior as well as British Compass Group trade at an average of 9 times their expected earnings. ($1 = 0.8490 euros)
(Reporting by Arno Schuetze; Editing by Georgina Prodhan)