* Deal worth up to 150 mln stg, sources say
* JLA looking HG to install new management team
LONDON, March 8 HG Capital is in exclusive talks
to buy UK commercial laundry equipment supplier John Laithwaite
(JLA), in a deal that could be worth around 150 million pounds
($225.5 million), people familiar with the matter said.
HG Capital saw off competition from other private equity
houses to enter exclusive talks for the business, which provides
washers and dryers to hospitals and student accommodation,
HG Capital declined to comment, while JLA was unavailable
A deal would allow HG Capital to start to mobilise its
recently raised 1.85 billion pound fund. Its sixth fund bucked
tough fundraising markets to beat targets and double the size of
its previous buyout pot.
West Yorkshire-based JLA had been looking for a buyer to
bring in new management for the company, an arrangement that
suits HG Capital, a source familiar with the process said.
JLA generated earnings before interest, tax, depreciation
and amortisation of about 16 million pounds in 2009 but valuing
the business proved difficult as it had large depreciation and
interest charge figures, the source said.
(Reporting by Simon Meads; Editing by Jon Loades-Carter)