Reuters: Private Equity: RLPC-Materis attracts bids for Kerneos sale-sources

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RLPC-Materis attracts bids for Kerneos sale-sources Jun 22nd 2012, 14:21 By Claire Ruckin LONDON, June 22 | Fri Jun 22, 2012 10:21am EDT LONDON, June 22 (Reuters) - French construction company Materis has attracted a number of potential buyers in the sale of its aluminates unit Kerneos, which is expected to fetch around 680 million euros ($857.2 million), banking sources said on Friday. The sale process has attracted interest from both private equity and trade buyers and second-round bids are due next week, banking sources said. Axa Private Equity and Astorg Partners are expected to submit bids, while French minerals processing company Imerys has also been close to the process. PAI Partners, which had expressed prior interest, is no longer thought to be involved in the auction, banking sources added. Axa, Astorg and PAI declined to comment. The company could fetch around 8.5 times Kerneos's approximately 80 million euro EBITDA, the bankers said. Bankers are preparing debt packages of around 300 million euros to back any buyout, should it go to a private equity buyer. Debt is likely to be provided through an all-senior leveraged loan structure. Proceeds from a sale will be used to repay some of Materis' debt, easing pressure on the Wendel-owned company after it recently completed a long-winded amend-and-extend process and covenant reset. During the nine months negotiations, Materis's lenders pushed for provisions regarding the way proceeds from disposals would be used. Wendel declined to comment on the sale. French private equity firm Wendel bought Materis in a 2006 leveraged buyout. Materis supplies specialty building materials for the construction industry, including aluminates, admixtures, mortars and paints. It is the world's number one aluminates supplier, according to Wendel's websites. Link this Share this Digg this Email Reprints

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