Scaffolding supplier Safway taps Goldman for sale: Reuters exclusive

Target: Safway Group Holding LLC

Price: Up to $1.5 bln

Seller: Odyssey Investment Partners LLC

Financial adviser: Soldman Sachs Group Inc

Safway’s private equity owner, Odyssey Investment Partners LLC, has started an auction for the company that could attract other construction equipment companies and buyout firms, the sources said this week.

Safway has annual earnings before interest, taxes, depreciation and amortization of around $165 million, the sources added.

They asked not to be identified because the sale process is confidential. Odyssey Investment Partners and Goldman declined to comment, while Safway did not respond to a request for comment.

Dealmaking in the construction equipment sector is on the rise amid a modest U.S. economic recovery. Outlays on private residential construction in June rose to their highest since May 2008, according to the most recent data from the U.S. Commerce Department, reflecting gains in home building and renovations.

KKR & Co LP, another private equity firm, agreed in June to sell Capital Safety, a supplier of harnesses, lanyards and other gear for workers in the construction, mining and industrial sectors, to 3M Co for $1.8 billion.

Based in Waukesha, Wisconsin, Safway rents, erects and sells scaffolding for the maintenance and renovation of commercial and multi-family buildings. It also provides scaffolding, insulation, coatings and other services supporting the refining, chemical and power industries.

Odyssey Investment Partners acquired Safway from German industrial group ThysssenKrupp AG in December 2009 for an undisclosed amount.

Reporting by Greg Roumeliotis in New York.