KKR Mulls Sale of WMF
November 18 2015 - 5:10AM
Dow Jones News
FRANKFURT—Private-equity firm KKR & Co. is considering
strategic options for high-quality German cookware maker
Wuerttembergische Metallwarenfabrik AG, including a sale that would
likely value the company at above €1 billion (above $1.06 billion),
people familiar with the matter said.
KKR delisted Wuerttembergische Metallwarenfabrik AG, better
known as WMF, from the stock market less than a year ago.
KKR hasn't mandated a bank to advise on its options yet and it
isn't guaranteed that a transaction will take place, these people
said.
WMF makes upmarket cookware and professional coffee machines and
is catering customers including Hilton Worldwide Holdings Inc. and
McDonald's Corp.
A potential scenario for KKR could involve getting a partner on
board for the coffee machine and/or the cutlery making activities,
industry experts said privately.
WMF last year increased earnings before interest and taxes by
18% to €56 million on revenue of €1.02 billion.
KKR bought a first stake in WMF mid-2012 and squeezed out the
remaining shareholders in March this year together with co-owner
Fiba, the investment vehicle of Austrian entrepreneur Andreas
Weissenbacher.
The U.S. private-equity firm has said it plans to grow the
kitchenware maker in China, where it foresees growing hunger for
high-quality German pots, pans and coffee machines. WMF grew
revenues in China by 40% last year.
Under KKR's lead, WMF also carried out a cost-cutting program
aimed at €30 million in annual savings, involving job cuts that
drew criticism from local labor unions
KKR also streamlined the company's portfolio by selling
low-margin brands.
Write to Eyk Henning at eyk.henning@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 18, 2015 04:55 ET (09:55 GMT)
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