Goldman Sachs, Cinven plan to sell Sweden’s Ahlsell to CVC Capital for $2.42 bn

Goldman Sachs and European buyout firm Cinven are planning to sell their stakes in Swedish tools trader Ahlsell AB, to CVC Capital Partners, in a deal that would value the Swedish construction products supplier at €1.8 billion ($2.42 billion), including debt.

The deal, which could be announced as early as today, would see Goldman Sachs and Cinven get a return of twice their investment, the Financial Times today reported, citing people familiar with the situation.

Goldman Sachs and Cinven each own 48 per cent of Ahlsell, while the rest is held by the management.

Goldman Sachs and Cinven had acquired Stockholm-based Ahlsell from Nordic Capital in 2006 for €1.2 billion ($1.6 billion) in one of the largest private equity deals in Sweden at the time.

Founded in 1877, Ahlsell distributes heating and plumbing products and other construction equipment in the Nordic region, Russia and Eastern Europe.

It posted revenue of 19.3 billion kronor and net profit of 1.25 billion kronor in 2010, according to the company's website. The company had net debt of 8.79 billion kronor at the end of June 2011.

CVC Capital, the buyout firm that owns Formula One, may raise about $1.5 billion of leveraged loans in order to fund the Ahlsell acquisition, Bloomberg had reported on 22 February, citing a person with knowledge of the matter.

Earlier, Goldman Sachs and Cinven had opened Ahlsell's books to Nordic Capital Svenska AB, Bain Capital and BC Partners.