FRANKFURT (Reuters) - Buyout group Cinven (CINV.UL) is preparing to sell German residential and technical lighting products maker SLV in a potential 800 million euro (632 million pounds) deal, three people familiar with the matter said.
The private equity investor has asked Goldman Sachs (N:GS) to organise the sale which it plans to officially launch in the second half of this year, the sources said.
SLV is expected to post earnings before interest, taxes, depreciation and amortisation of about 65 million euros this year and may be valued at 12-13 times that, they said.
"A low double-digit multiple is realistic," one of the sources said.
Cinven and Goldman Sachs declined to comment.
The buyout group will target other lighting products makers as well as other private equity investors as possible buyers of SLV, the sources said.
Europe's listed lighting manufacturers include Fagerhult (ST:FAG) of Sweden, Beghelli (MI:BE) of Italy and Austria's Zumtobel (VI:ZUMV).
Cinven bought SLV from peer investor HgCapital for about 500 million euros in 2011. HgCapital had purchased it from SLV's founder in 2007 for 320 million euros.
SLV is benefiting from strong construction activity in Germany and other countries and from regulations pushing energy-efficient technologies like LED lamps.
The group was set up in 1979. Since being acquired by Cinven, it has invested in logistics sites and bought Swiss LED lighting fixtures maker Unex.
In 2014, SLV reported sales of 157 million euros, more than half of them in Germany, Austria and Switzerland. In the first six months of 2015, sales increased by 8.3 percent, according to the latest information available.
($1 = 0.8777 euros)