August 10, 2017 / 3:19 PM / a year ago

LPC-Banks line up debt for IK Investment Partners’ Breteche buy

LONDON, Aug 10 (Reuters) - Banks have lined up around €210m of loans to back private equity firm IK Investment Partners’ acquisition of a majority stake in French-based industrial equipment manufacturer Breteche Industrie, banking sources said.

IK Investment agreed to buy a majority stake in Breteche from Equistone, alongside management, for an undisclosed amount, it was announced at the end of July.

BNP Paribas, HSBC and CIC are leading a leveraged loan financing backing the buyout, joined by CA-CIB and LCL, the sources said.

The loans are due to launch for syndication to institutional investors in September, the sources said.

The financing is expected to comprise a term loan B totalling around €160m-€170m; a €25m acquisition facility; and a €20m revolving credit facility, the sources said.

Leverage on the deal totals around 5.0 times debt to Ebitda.

IK Investment Partners was not immediately available to comment.

Breteche consists of six companies that design, engineer, manufactures and installs equipment for the production of food, pharmaceutical and cosmetic products. The group employs nearly 1,000 people and generated a turnover of approximately €220m in 2016. (Editing by Christopher Mangham)

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