(Reuters) – German industrial group GEA will target private equity groups in its push to sell its heat exchanger unit, hoping to fetch a price of more than 1.3 billion euros ($1.7 billion), three people familiar with the situation said.
GEA, which is being advised by Deutsche Bank, will approach investors such as First Reserve, CVC, Blackstone, Permira, Cinven and Advent, the sources said, speaking on condition of anonymity.
“I do not see any GEA peer bidding for the unit as a whole,” one of the people said on Friday.
GEA’s heat exchanger business, its second largest by revenue, offers products ranging from air conditioning systems to cooling towers but has limited synergies with its other operations. Last month, GEA said it aims to focus on its highly stable business with the food industry.