TowerBrook Frontrunner for Volution

TowerBrook Capital Partners is emerging the frontrunner in the auction for ventilation and heating systems manufacturer Volution. The company is currently owned by AAC Capital Partners, Reuters reported Friday. AAC, the UK team of the former buyout arm of ABN Amro, acquired Volution in 2006 from Montagu Private Equity, Reuters wrote.

(Reuters) – European private equity firm AAC Capital Partners’ sale of ventilation and heating systems manufacturer and supplier Volution looks set to go ahead, with TowerBrook Capital Partners emerging as frontrunner, banking sources said on Friday.

AAC, the UK team of the former buyout arm of ABN Amro, acquired Volution in 2006 from Montagu Private Equity.

It put the company up for sale last year with final bids due in October. The process was delayed despite interest from a number of parties, including trade buyers and buyout houses, after their offers were thought to fall below expectations.

TowerBrook has been in exclusive talks with AAC, bankers said, and a deal is expected to be tied up in coming weeks.

AAC and TowerBrook declined to comment.

A deal with TowerBrook would value the company at less than the 200-million pound ($306 million) AAC was hoping to achieve last year, the banker said.

At 200 million, the leveraged buyout would have been backed by around 80 to 90 million pounds of debt financing, although debt has also been reduced below this level and will be provided by a small group of banks.