(Bloomberg) -- EQT AB is exploring a sale of Ellab that could value the industrial technology company at about €1 billion ($1.1 billion), people with knowledge of the matter said.

The Swedish investment firm is working with Morgan Stanley on the possible disposal, according to the people, who asked not to be identified discussing confidential information. Ellab is likely to draw interest from private equity firms and EQT has received some preliminary expressions of interest, they said.

Deliberations are ongoing and there’s no certainty they’ll result in a sale, the people said. Representatives for EQT and Morgan Stanley declined to comment.

Denmark-based Ellab was founded more than 70 years ago as a maker of temperature indicators for use in hospitals and the pharmaceuticals industry. Today, its products are used across health-care and food manufacturing, according to its website. EQT invested in the business in 2019 with money from its Mid Market Europe fund.

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