At least three private equity firms are understood to have placed first round bids for Britax Childcare, which makes car seats for children and pushchairs. ABN AMRO Capital, PPM and 3i have tabled offers of £200m or above, a source close to the KPMG-run auction said. Montagu is understood to have dropped out.
Britax generated 85% of last year’s sales of £115m from children’s car seats and is seen as an attractive buy because of its strong brand and distribution channels. The company is also helped by barriers to new entrants in its markets due to safety standards.
Private equity has been active in the sector before. Montagu sold children’s products business Ampa France for US$240m two years ago. Charterhouse has just bought Avent for about £300m. Britax Childcare is part of Britax International, which also has an aircraft interiors division and a public safety arm. It was bought by RBS four years ago.