LONDON, July 10 UK-based private equity group
Silverfleet Capital has begun exclusive talks to buy German
sausage casing maker Kalle Nalo from rival group Montagu
Private Equity, the Financial Times newspaper reported on
Friday in an unsourced story.
Citing people "familiar with the situation" the paper said
Silverfleet Capital, the former buy-out arm of Prudential, is
close to agreeing a deal to buy Kalle Nalo for about $350
million, though talks could still collapse at any time.
In June, Reuters reported that a group of seven or eight
banks were working on a financing package for the purchase.
Montagu Private Equity had appointed Sal Oppenheimer to
advise on the possible sale of Kalle and had discussed a
possible club financing to back the deal with banks.
Progress on the sale has been slow, in line with other
European auctions due to the scarcity of debt financing and
private equity firms' struggle to achieve target returns on
CVC Capital Partners sold Kalle Nalo to Montagu in 2004 for
an undisclosed price, backed by a leveraged loan from Mizuho.
Before it was acquired by CVC, Kalle was a subsidiary of
Hoechst. Kalle produces artificial sausage casings out of
viscose, plastic and textiles. The company also manufactures
(Reporting by Stefano Ambrogi; Editing by Bernard Orr)