MADRID/FRANKFURT/LONDON Private equity firm CVC Capital Partners [CVC.UL] has hired Swiss bank UBS (UBSG.S) for the sale of its stake in Lecta, one of southern Europe's largest paper manufacturers, three sources close to the deal said.
CVC has owned Lecta since 1997 and oversaw its restructuring after a slump in demand in the paper industry. In 2015 Barcelona-based Lecta had 1.6 billion euros ($1.69 billion) of revenues and core profit, or EBITDA, of 110 million euros.
CVC has hired UBS to either sell Lecta or float it on Spain's stock market, one source said, adding that CVC had unsuccessfully tried to sell it in the past. The sources did not say whether CVC would retain a stake in Lecta.
Representatives for UBS and CVC declined to comment.
(Reporting by Andres Gonzalez in Madrid, Arno Schuetze in Frankfurt and Dasha Afanasieva in London; Writing by Angus Berwick; Editing by Sarah White and Julien Toyer)