Owners of building materials firm Xella pick banks to launch sale: sources

[June 29, 2016]  LONDON/FRANKFURT (Reuters) - The owners of German building materials maker Xella are taking a fresh attempt at divesting the German company after failing to float it last year, people familiar with the matter said.

Private equity group PAI Partners and the investment arm of Goldman Sachs have mandated Morgan Stanley and Goldman Sachs to find a buyer for the maker of specialized concrete and fireproof building materials, they said.

The auction is expected to start in September, while an IPO also remains an option, the people said.

Xella posted revenues of 1.3 billion euros and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 243 million euros in the twelve months up to the end of March 2016, according to its latest financial presentation.

Listed peers such as Wienerberger, Braas Monier, Etex or H+H trade at about 5 times their expected core earnings.

Goldman Sachs, Morgan Stanley declined to comment, while PAI was not immediately available for comment.

($1 = 0.9021 euros)

(Reporting by Pamela Barbaglia and Arno Schuetze; Editing by Harro ten Wolde)

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