Target: Sage Automotive Interiors
Multiple: 7x EBITDA
Sponsor: Gores Group
Financial Adviser: Nomura
Nomura is advising on the process, the people told sister website peHUB. Greenville, South Carolina-based Sage develops and makes automotive bodycloth and headliners for car manufacturers including General Motors, Toyota and Honda. Sage produces about $42 million of EBITDA, one of the sources said.
First round bids for Sage were due April 25, the second person said. Sage is likely to receive bids of around 7x EBITDA, the source said.
The Sage transaction is too small for larger buyout shops but will likely attract mid-market attention. Buyout firms that have invested in auto include Kohlberg & Co, Wynnchurch Capital, the Sterling Group, Insight Equity and Platinum Equity, sources said.
Lear Corp, which acquired Guilford Mills in 2012, could also be involved, one source said.
Executives at Lear declined comment. Gores, Sage and Nomura could not be reached for comment.
Luisa Beltran is a senior writer for peHUB.