Targets: SunSource Holdings Inc, Henniges Automotive Holdings Inc
Seller: Littlejohn & Co
Price: $1.2 bln+
Littlejohn has hired Barclays Plc to explore a sale of SunSource, an Addison, Illinois-based distributor of fluid power and motion control components and systems for industrial processes, people familiar with the matter said this week.
Littlejohn has also hired Morgan Stanley to run a sale process for Henniges, an Auburn Hills, Michigan-based supplier of sealing and anti-vibration systems for the automotive market, the people added.
Both companies have annual earnings before interest, tax, depreciation and amortization of around $70 million and could each be valued at more than $600 million in a sale, including debt, the people said.
The sources asked not to be identified because the talks are confidential. Littlejohn, Barclays and Morgan Stanley declined to comment, while SunSource and Henniges representatives did not immediately respond to requests for comment.
Littlejohn acquired Henniges in 2010 from private equity firm Wynnchurch Capital Partners for an undisclosed amount. One year later, Littlejohn acquired SunSource from buyout firm CHS Capital LLC, also for an undisclosed amount.
SunSource generated estimated sales in 2013 of more than $450 million, while Henniges had revenue of $774 million that same year, according to Moody’s Investors Service Inc.
Greenwich, Connecticut-based Littlejohn said earlier this year it had raised its fifth private equity fund, amassing $2 billion and exceeding both its fundraising target of $1.5 billion and its predecessor $1.34 billion fund, which was raised in 2010.
Reporting by Greg Roumeliotis and Soyoung Kim of Reuters news service.