Sources: GEA to target sale of private equity unit worth Eur1.3 billion
GEA, an Industrial group in Germany, would target private equity group with its hope to raise up to Eur1.3 billion equivalent to US$1.7 billion. According to three people with knowledge of the matter, GEA planned to sell its heat exchanger unit to obtain the money.
GEA's heat exchanger unit was its second biggest by profit. It offered products like air conditioning system and cooling towers. However, the unit owned incomplete synergies with its other businesses. Last month, GEA stated that it aimed to concentrate on its stable unit in the food industry.
The unit was called HX and its auction process was currently on the early stage. The information packages would be sent to possible buyers in autumn. The sources added that bids were expected to come several weeks after the sending procedure.
"The sales process is being set up according to plan," a spokesperson for GEA stated.
"The quality of HX's sub-units is quite diverse," a banker close to a possible buyer said, "Cooling towers will be a tough sell."