ThyssenKrupp holds roadshow for PE firms for stainless steel business
03 Nov 2011
ThyssenKrupp AG, Germany's biggest steelmaker has invited private equity firms to a roadshow for the sale of its stainless steel business, Reuters yesterday reported, citing two sources familiar with the matter.
Among those invited include Apollo Global Management, Blackstone Group and Kohlberg Kravis Roberts, said one source, adding that talks were at a very early stage.
Essen-based ThyssenKrupp had announced in May an extensive reorganisation that includes the sale or spinoff of stainless steel business in order to cut debt and focus on engineering.
Citigroup, Deutsche Bank and Rothschild has been appointed to handle the sale or spinoff of the business, which has annual sales of €5.9 billion ($8.2 billion).
ThyssenKrupp is also planning the divestment of its iron casting in the US ThyssenKrupp Waupaca, which has annual sales of almost €900 million.
European stainless-steel producers have struggled with higher raw-material costs as prices of the metal decline.