February 28, 2017 / 10:15 AM / 6 months ago

EQT puts Danish packaging group Faerch Plast up for sale - sources

FRANKFURT, Feb 28 (Reuters) - Swedish buyout firm EQT has launched the sale of Danish packaging group Faerch Plast in a potential 700 million euro ($741 million) deal, hoping to benefit from high sector valuations, three people close to the matter said.

The investor has asked Credit Suisse and investment banking boutique FIH Partners to organise an auction, which will kick off in the coming weeks, they added.

EQT declined to comment, while the banks were not immediately available for comment.

Faerch, which is expected to post earnings before interest, tax, depreciation and amortization of 70-80 million euros this year could be valued at 9-10 times that, the sources said.

EQT bought Faerch in 2014 and has added to the asset with the acquisitions of Anson Packaging and Sealed Air's European tray business in 2015.

The company has production sites in Denmark, the UK, the Czech Republic and Spain and employs 1,100 staff. It makes rigid plastic trays primarily for food producers and retailers. ($1 = 0.9446 euros) (Reporting by Arno Schuetze; Editing by Victoria Bryan)

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