EXCLUSIVE-UPDATE 1-EQT eyes sale of bath maker Sanitec-sources

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Tue Dec 13, 2011 3:50pm GMT

STOCKHOLM/LONDON Dec 13 (Reuters) - Swedish private equity firm EQT is planning to sell Finnish toilet and bath maker Sanitec, a deal that could fetch around 1 billion euros, and has hired UBS to advise on the process, sources familiar with the matter said on Tuesday.

The planned auction follows a string of disposals for the Wallenberg family-backed private equity group, though its attempted 5.2 billion pound sale of Denmark's ISS to British security firm G4S (GFS.L) fell through in November. [ID:nL5E7M10JP]

Successful sales have included alarms maker Securitas Direct and German cable TV group Kabel Baden Wuerttemberg.

Sanitec was severely hit by the abrupt economic downturn following the collapse of Lehman Brothers in 2008. EQT had to inject more equity to keep control of the business.

Sanitec could attract interest from other private equity-owned bathroom products groups and trade rivals, including Ideal Standard, Grohe, Jacuzzi and Spain's Roca, one person familiar with the matter said.

EQT is likely to await financial figures for the fourth quarter before launching a sales process in the spring, that person added.

Sanitec had sales of 777 million euros in 2010 with earnings before interest tax, depreciation and amortisation of 75 million euros, according to EQT's homepage.

The company makes bathroom furniture under a raft of different brands including Allia and Twyford.

EQT bought the firm in 2005. EQT and the company's lenders negotiated a refinancing of the firm in 2009 where EQT injected 115 million euros of new equity, and the lenders cut Sanitec's debt in return for a stake in the company.

Sanitec joins a growing pipeline of private equity disposals for 2012 in Scandinavia, including installation services firm Bravida and steel maker Ovako. [ID:nL5E7MU5S7] [ID:nL5E7M23A6]

Dealmaking across the region is continuing apace, despite a crisis of confidence in the euro zone weighing on deals elsewhere in Europe.

EQT declined to comment.

(Reporting by Mia Shanley and Sven Nordenstam in Stockholm, and Simon Meads in London; Editing by David Cowell)

((Sven.Nordenstam@thomsonreuters.com)(+46)(0)(8 700 11 66)(Reuters Messaging: sven.nordenstam.reuters.com@reuters.net)) Keywords: EQT/SANITEC

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