MCD McDonalds Corp

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

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(END) Dow Jones Newswires

November 18, 2015 04:55 ET (09:55 GMT)

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