EA Elektro-Automatik draws interest from private equity, industrial firms -sources

By Milana Vinn and Anirban Sen

NEW YORK (Reuters) - Private equity firms Blackstone Inc, EQT AB and THL Partners are competing against large U.S. industrial automation firms to acquire German power electronics firm EA Elektro-Automatik, according to people familiar with the matter.

Emerson Electric Co, Keysight Technologies Inc and Fortive Corp have also expressed interest in buying EA Elektro-Automatik, which is owned by mid-market investment firm Bregal Investments, the sources said, requesting anonymity as the discussions are confidential.

A deal could value the Viersen, Germany-based company between $1.5 billion and $2 billion, including debt, the sources said, cautioning that a deal is not certain.

EA Elektro-Automatik currently generates 12-month earnings before interest, taxes, depreciation and amortization of about $100 million, the sources said.

The company has been working with a financial advisor to explore a sale since earlier this year, the sources said, adding that it received first-round bids in September.

Blackstone and THL declined to comment. Bregal, EA Elektro-Automatik, EQT, Emerson Keysight and Fortive did not immediately respond to requests for comment.

Bregal, which was formed in 2002 and is backed by the billionaire Brenninkmeijer family, has more than 17 billion euros ($17.79 billion) of assets under management. Bregal, which acquired EA Elektro-Automatik, has invested in over 85 companies till date, according to its website.

EA Elektro-Automatik, which currently has a presence in the Americas, Europe and Asia, supplies equipment that provides power supply for high-tech manufacturing processes in various sectors, including automotive, energy storage, telecommunications and aerospace.

($1 = 0.9556 euros)

(Reporting by Milana Vinn in New York; Editing by Josie Kao)