EQT, KKR Said to Make Bilfinger Shortlist for Unit Sale

  • Bilfinger said to speak to about four interested parties
  • German company considers sale after getting unsolicited bids

Buyout firms including EQT Partners AB and KKR & Co. are among bidders that made the shortlist to acquire Bilfinger SE’s building and facilities management unit, according to people familiar with the matter.

The German company is in talks with about four bidders including the two private equity firms and strategic buyers, said the people, who asked not to be identified because the talks are private. Bilfinger, which said in January it received unsolicited offers for the division, is seeking more than 1.3 billion euros ($1.4 billion) for the unit, the people said.

If Bilfinger goes ahead with the sale, the company that was once Germany’s second-biggest builder will become primarily an industrial service provider. After companies expressed interest in buying the business, Bilfinger appointed external advisers to conduct talks and evaluate market conditions, the Mannheim, Germany-based company said at the time.

Spokesmen for Bilfinger, EQT and KKR declined to comment.

Since taking over in June, Chief Executive Officer Per Utnegaard has announced plans to sell the power division, which had caused a flurry of profit warnings, as well as the water technologies business to focus on Europe and industries where it has sizable market share. As a result, Bilfinger’s remaining businesses will be limited to industrial services and real estate.

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