FRANKFURT/ISTANBUL, May 15 (Reuters) - Turkey’s Teklas Kaucuk, which supplies parts to carmakers such as General Motors and BMW, has put itself up for sale in a deal that could value the company at as much as 700 million euros ($782.9 million), two people familiar with the matter said.
The family-owned company - which makes rubber hoses and metal tubes mainly for use in air conditioning, brakes and electric vehicles - is being advised by JP Morgan on the sale.
Teklas, which also supplies parts to Daimler, FCA , Toyota and Volkswagen, was not immediately available for comment. JP Morgan declined to comment.
Teklas tried to sell itself in 2015 but the plan stalled after a diesel emissions scandal at Volkswagen prompted investors to assess the impact of the scandal on Teklas’s sales.
The cars sector has seen high-profile deals in recent months including KKR’s acquisition of Magneti Marelli and ZF Friedrichhafen’s purchase of Wabco for over $7 billion.
But there has been less interest in companies producing technology tied to conventional combustion engines, which are under pressure as the industry shifts towards electric vehicles.
The auction for Teklas is expected to kick off soon with potential suitors such as Cooper Standard and Bain Capital being targeted, the sources said.
Teklas is expected to be valued at seven to eight times its annual earnings before interest, tax, depreciation and amortization of about 80-90 million euros, suggesting it could fetch between 600-700 million euros, the sources said.
Founded in 1970s, Teklas Kaucuk is based in the western Turkish province of Kocaeli. It employs more than 4,800 people at sites in Europe, Mexico and China. ($1 = 0.8941 euros) (Reporting by Arno Schuetze in Frankfurt and Can Sezer in Istanbul, editing by Deepa Babington)