British engineering company Edwards Group plans an initial public offering (IPO) in 2012 after pulling the plug on one earlier this year, one of its private equity owners said on Wednesday.
CCMP Capital and Unitas Capital bought Edwards, a maker of vacuum pumps for industrial processes, from Germany's Linde AG
When we bought Edwards, its earnings before interest, tax, depreciation and amortisation (EBITDA) was about $60 million, now it is just under $300 million. We will IPO it in 2012, CCMP chairman Greg Brenneman told Reuters on the sidelines of the Buyouts Texas conference in Dallas.
Brenneman would not disclose details on the exact time and size of the planned flotation, but expected the company to be valued at between 6 and 8 times EBITDA, meaning its enterprise value could top $2 billion.
Many private equity companies are opting for IPOs rather than auctions of their assets as tight financing conditions make it difficult for other buyout firms to meet their price expectations, yet the IPO market also remains challenging due to volatility caused by Europe's sovereign debt crisis.
(Reporting by Greg Roumeliotis; editing by Andre Grenon)