PEP, CHAMP on short list to buy Loscam – sources

By Sharon Klyne and Victoria Thieberger

MELBOURNE, April 23 (BestGrowthStock) – Australian private equity
firms Pacific Equity Partners and CHAMP are among firms
advancing to the second round of bidding to buy pallet maker
Loscam, three banking sources familiar with the process said.

Loscam owner Affinity Equity Partners is hoping to raise
A$500 million to A$700 million ($460 million-$640 million) in
the sale.

The sale had also attracted preliminary bids from other
large private equity firms including KKR & Co [KKR.UL], Bain
Capital and Warburg Pincus, the banking sources said, but it
was not immediately clear whether of any those bidders have
progressed. U.S. private equity giant Carlyle Group
[CYL.UL], which put in a preliminary offer for Loscam, has
decided not to proceed to the second round, another source told
Reuters.

“They are no longer in the process,” said a source familiar
with the situation, who declined to be named because the matter
is confidential.

A spokesman for Affinity declined to comment.

PEP did not return calls seeking comment while CHAMP
declined to comment for this story, but it is in the process of
raising a third investment fund that is due to close in coming
months.
Credit Suisse (CSGN.VX: ) and Deutsche Bank (DBKGn.DE: ), which
are advising Affinity Equity Partners, have put together a
staple financing to back the sale of the business.

Affinity acquired the company in 2005 for about A$250
million from DB Capital Partners.

Loscam makes and hires out wooden and plastic pallets, and
is a competitor to listed Brambles Ltd (BXB.AX: ), the world’s
top pallet supplier. The company, based in Australia, has 11
offices throughout Asia, according to its web site.

Stock Market Report

(Additional reporting by Stephen Aldred; editing by Balazs
Koranyi)

PEP, CHAMP on short list to buy Loscam – sources