FRANKFURT, Nov 3 (Reuters) - Buyout group SVPGlobal has putUK food packaging group Linpac up for sale in a potential 500million euro ($556 million) deal led by investment bankRothschild, several people close to the matter said.
Bidders have until the middle of next week to submitfirst-round offers for the maker of plastic boxes, trays andfilms for vegetables, meat, cake and frozen food, they said.
Private equity investors with a penchant for packagingassets such as PAI, Blackstone, CVC or Lindsay Goldbergare expected to hand in bids.
Linpac expects to post earnings before interest, taxes,depreciation and amortisation (EBITDA) of just below 60 millioneuros this year, and some of the bids are expected to value thecompany at 8 times that, around 480 million euros.
SVPGlobal is hoping for a higher valuation.
Linpac peers like RPC, Sonoco, Berry, Bemis, Sealed Air, and Huhtamaki trade at an average multiple of more than 11 timestheir expected core earnings.
SVP, Rothschild and the potential bidders declined tocomment or were not immediately available for comment.
SVP took control of the company in late 2014 after buying uplarge chunks of debt related to a 2003 takeover of Linpac byprivate equity group Montagu for 860 million pounds ($1.1billion), which had been backed by a 600 million pounds loan.
Linpac supplies over 70 countries worldwide and has 2,500employees.
($1 = 0.8993 euros)
($1 = 0.8066 pounds) (Reporting by Arno Schuetze; Editing by Maria Sheahan)