Bain Capital is looking to sell microconnections division of French electrical connectors maker FCI in a deal worth up to $1 billion, Reuters reported. Buyout firms Blackstone, Carlyle Group, TPG Capital and Kohlberg Kravis Roberts & Co. are among those who may be approached to buy the business, Reuters said.
(Reuters) - Bain Capital has hired investment banks to sell a unit of French electrical connectors maker FCI in a deal worth up to $1 billion, sources with direct knowledge of the matter told Reuters on Monday.
Sources said private equity funds, including Blackstone , Carlyle Group [CYL.UL], Kohlberg Kravis Roberts & Co [KKR.UL] and TPG [TPG.UL] were among parties that may be approached to buy the business.
The microconnections division of FCI, which makes micro circuits used in devices like smart cards, derives around two thirds of its 200 million euros ($287 million) annual revenue from Asia, according to FCI’s website.
A connector transmits electrical power or electronic signals between two devices and provides the vital link between electrical components.
Bain declined to comment, while FCI was unavailable. Sources declined to be identified as the discussions were private.
All buyout funds mentioned in this story either declined to comment or were not available.
(Additional reporting by Simon Meads; Reporting by Stephen Aldred; Editing by Denny Thomas)
($1 = 0.6963 euro)
FCI Group, a portfolio company of Bain Capital, has agreed to sell its electrical division (Burndy) to Hubbell Inc. No financial terms were disclosed for the deal, which is expected to close by year-end.
FCI group is pleased to announce that it has entered into an agreement to sell its Electrical division* known by the brand name BURNDY® to Hubbell Incorporated. FCI- BURNDY® represented circa 12% of FCI group’s total sales revenue in 2008. As a result of the excellent performance of its Electrical division, FCI had received many unsolicited offers over the years for its acquisition. Some of the recent offers were particularly attractive and deserved closer attention. Therefore, FCI top management decided to carefully study these proposals, which ended in the decision to divest the Division.
Pierre Vareille, Chairman and CEO of FCI group, comments – ‘The Electrical Division had the least synergies with the other divisions of FCI in terms of products and customers and we think that the combination with Hubbell will enhance the value creation opportunities for the BURNDY® brand. Moreover, thanks to this divestiture, FCI’s financial situation is more sound and stable than ever. This divestiture opens for FCI a wealth of opportunities for new developments, be it vis-à-vis our customers, our partners or other companies that may join our group.’
The deal remains subject to approval of competent authorities and shall be finalized during Q4 2009.