FRANKFURT, Feb 3 (Reuters) - Private equity group 3i is preparing to sell German car parts maker Hilite Internationalin a deal that could be worth more than 400 million euros ($541million), two people familiar with the transaction said.
Morgan Stanley has been hired to look at optionsincluding a potential sale or refinancing, the sources added, as3i seeks to take advantage of an upturn in car markets.
Large car component manufacturers such as BorgWarner and Hitachi, along with Chinese suppliers, will beapproached to gauge interest, the sources said.
Hilite, which makes automatic transmission parts andcam-phasing systems that help engines to run more efficiently,numbers leading carmakers Volkswagen, Daimler, BMW, General Motors and Chrysleramong its customers.
The company was bought by 3i in 2011 at a valuation of about$300 million, sources familiar with the deal said at the time.
It has about 1,300 employees, annual sales of 340 millioneuros and earnings before interest, tax, depreciation andamortisation of about 60 million euros.
The price for Hilite is expected to be between 360 millioneuros and 420 million euros, the sources said, equivalent to avaluation of six to seven times its core earnings.
Britain's 3i, BorgWarner and Morgan Stanley all declined tocomment, while a Hitachi spokesman was not immediately availablefor comment.