Montagu Private Equity mulls Survitec Group sale

LONDON, March 31 (Reuters) – Private equity firm Montagu Private Equity is mulling the sale of Ireland-based survival technology manufacturer Survitec Group, banking sources said on Tuesday.

The possible sale of the life jacket and life raft manufacturer is expected to attract interest from trade and private equity buyers, one of the bankers said.

Survitec, which supplies lifeboats to the US Navy and inflatable hospitals to the Red Cross, could fetch a sale price of around 200 million pounds although valuations remain difficult to assess, a second banker said.

Rothschild is expected to be appointed to advise on a possible sale, two bankers said, adding that the informal process is at an early stage.

A third banker said that the information memo for the sale had already been issued.

Montagu Private Equity bought Survitec for £146m in 2004 from Alchemy Partners in a management buyout.

The buyout was backed with a £105m pound loan arranged by Barclays, according to Thomson Reuters LPC data.

Sponsor Montagu Private Equity is also looking to sell German sausage casings maker Kalle Nalo, but bankers said the sale is proceeding slowly amid difficult market conditions.

(By Zaida Espana and Tessa Walsh. Editing by Greg Mahlich)