Bain Capital Is Said to Consider Sale or Public Offering of France's FCI
Bain Capital LLC is weighing a sale or an initial public offering of FCI, a French maker of electrical connectors valued at about 1.6 billion euros ($2.2 billion), said three people with knowledge of the matter.
Goldman Sachs Group Inc. is advising Boston-based Bain on options for FCI, said the people, who declined to be identified because the talks are private. The private-equity firm is weighing whether to dispose of FCI’s automotive unit and sell shares of the rest of the company through an IPO, or to seek offers for the entire business, the people said.
FCI makes connectors used to transmit power in cars, phones and computers, and competes with Amphenol Corp. and Tyco Electronics Ltd. Bain Capital purchased the company from French nuclear-reactor maker Areva SA for 1.07 billion euros in 2005.
The company may attract strategic bidders and private- equity firms, the people said. Bain is also considering listing the company’s shares in Asia, where demand for connectors is growing, they said.
Leveraged buyout firms such as Bain Capital pool money from investors to buy companies, financing the purchases mostly with debt, with the intention of selling them later for a profit. The firms are resuming asset sales after the global financial crisis brought deal-making to a near halt.
A spokesman for Bain Capital in London and a spokeswoman for Goldman Sachs declined to comment.
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