Bloomberg News

CVC Said in Exclusive Talks to Buy Ahlsell From Cinven, Goldman

January 31, 2012

Jan. 30 (Bloomberg) -- CVC Capital Partners Ltd., the buyout firm that owns Formula One, is in exclusive talks to buy Ahlsell AB, a Swedish construction products supplier, four people with knowledge of the talks said.

The firm has been granted four weeks by Ahlsell’s owners, Goldman Sachs Group Inc. and Cinven Ltd., to complete the financing of its bid, said one of the people, who declined to be identified because the talks are private. A sale may raise about 1.5 billion pounds ($2.3 billion), the people said. Reuters reported the talks earlier today.

CVC competed with the private equity firms Nordic Capital Svenska AB, Bain Capital LLC and BC Partners Ltd. for the asset, people with knowledge of the process said earlier this month. Cinven and Goldman Sachs bought Stockholm-based Ahlsell in 2006 for 1.2 billion euros ($1.6 billion), according to Cinven’s website.

Officials at Goldman Sachs, Cinven and CVC declined to comment.

Ahlsell, which distributes heating and plumbing products and other construction equipment in the Nordic region, Russia and Eastern Europe, had revenue of 19.3 billion kronor ($2.9 billion) and earnings before interest, taxes and amortization of 1.25 billion kronor in 2010, according to the company’s website.

--Editors: Chris V. Nicholson, Jon Menon

To contact the reporter on this story: Anne-Sylvaine Chassany in Paris at achassany@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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