(Bloomberg) -- Bain Capital and Cinven are among buyout firms studying Forgital Group, an Italian manufacturer of forged components mainly for the aerospace sector, according to people familiar with the matter.
Blackstone Inc. and Warburg Pincus are also among the interested parties for the business, which could be valued at as much as €2 billion ($2.2 billion) in a sale, the people said. The asset could also attract other companies in the same industry such as ATI Inc., said the people, who asked not to be identified as the information is private.
Carlyle Group, which acquired Forgital in 2019, is planning to kick off a sale process in the coming months, the people said. Deliberations are ongoing and the potential bidders could opt not to make any offers, the people said. Carlyle could also decide to keep the business for longer, they added.
Representatives for ATI, Bain, Blackstone, Carlyle, Cinven and Warburg Pincus declined to comment.
Improving conditions for dealmaking are providing a respite to private equity firms, which face pressure to put capital to work and generate returns for investors and so-called limited partners. Buyout firms clinched more than $30 billion of deals around the world in the last week of June and the strong momentum continues, defying the usual northern summer lull. Carlyle is also weighing a sale of StandardAero in a deal that could value the aircraft maintenance services provider at $10 billion or more including debt, Bloomberg News reported in July.
Founded in 1873 in northeast Italy, Forgital makes seamless rolled rings in rectangular or profiled sections, as well as assembled fan modules for the aerospace, power generation and defence industries, its website shows. The company has production sites in Italy, France and the US.
Carlyle bought the entire shareholding of Forgital at a valuation of about €1 billion in 2019. The Italian firm was previously majority-owned by members of founding Spezzapria family, while Fondo Italiano d’Investimento, managed by Neuberger Berman, had a minority stake.
--With assistance from Daniele Lepido and Kiel Porter.
(Adds ATI’s potential interest in second paragraph.)
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