HgCapital eyes German lighting firm sale -sources

* HgCapital plans 400 mln eur plus sale of SLV Group-sources

* Said to appoint Macquarie for 2011 sale of German firm

* SLV Group EBITDA more than 40 mln euros

By Quentin Webb and Simon Meads

LONDON, Nov 25 (Reuters) - Buyout firm HgCapital has appointed Macquarie (MQG.AX) to investigate a sale of SLV Group, the German lighting firm it bought for 320 million euros ($426.1 million) in 2007, people familiar with the matter said.

SLV, which makes and supplies lights to the specialist trade, could fetch more than 400 million euros ($532.6 million), one of the people said. Earnings before interest, tax, amortisation and depreciation (EBITDA) are running at more than 40 million euros, the person said. Ebitda was about 25 million in 2006.

HgCapital is looking to sell the business in the first half of 2011, the people said.

HgCapital bought SLV from founder and majority shareholder Franko Neumetzler in a deal that valued the business at 320 million euros including debt.

SLV, based in Ubach-Palenberg near Aachen, makes lighting for homes and commercial sites, including shops and exhibition centres. It established a subsidiary in the United States earlier this year to sell its products and has subsidiaries and associates across Europe and in Russia and Hong Kong.

At the time of acquiring the business, HgCapital said revenues were expected to double to around 150 million euros by 2010.

Europe's listed lighting manufacturers include Fagerhult AB (FAG.ST) of Sweden, Beghelli SpA (BE.MI) of Italy and Austria's Zumtobel AG (ZUMV.VI).

HgCapital has agreed eight deals to buy companies in 2010, standing out from its peers in the first half of the year for its rapid investment pace. But facing stiff competition from other buyout houses for deals, the company has switched its focus to selling portfolio companies, such as Visma of Norway.

HgCapital and Macquarie declined to comment. SLV was not immediately available for comment. (Additional reporting by Alexander Huebner and Arno Schuetze in Frankfurt; Editing by Erica Billingham) ($1=.7510 Euro)