(Bloomberg) -- KPS Capital Partners is exploring options for Scottish engineering firm Howden Group Ltd., people with knowledge of the matter said. 

The New York-based private equity firm is working with advisers to study a potential sale or initial public offering of Howden, according to the people. KPS is seeking to fetch a valuation of as much as $3.5 billion for the industrial equipment maker, the people said, asking not to be identified because the information is private. 

Howden manufactures fans, compressors, heat exchangers, steam turbines and other equipment used for handling air and gas. The Glasgow-based company’s products are used by customers in the industrial, energy, mining and infrastructure sectors. It has more than 5,300 employees and over 20 manufacturing facilities in a dozen countries, according to KPS’s website. 

Deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said. A representative for KPS couldn’t immediately comment, while a person who answered the phone at Howden’s office said nobody was available to comment.

KPS bought Howden in 2019 from Colfax Corp. for $1.8 billion including debt and expanded the company through acquisitions. It made six purchases last year including a deal for Compressor Products International, a maker of after-market components for reciprocating compressors, according to a December press release. 

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