UPDATE 2-Gores to auction German car parts maker Hay -sources

Thu Sep 10, 2015 4:45am EDT
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* Auction could start this year -sources

* Linamar, Metaldyne, Mahindra seen as potentially interested

* Deal could value Hay at 6-7 times EBITDA -source (Adds details on Hay, sector M&A)

By Arno Schuetze and Alexander Hübner

FRANKFURT, Sept 10 (Reuters) - U.S.-based investor The Gores Group has put German car parts maker Hay up for sale in a potential 400 million-euro ($448 million) deal, several people familiar with the deal said.

The private equity firm, which acquired Hay for more than 100 million euros in 2012 after Hay's near-bankruptcy in the economic crisis and has since expanded the business, has now asked investment bank Rothschild to explore options for the metal-forging specialist and may start an auction process as early as the end of 2015, the sources said.

Hay could appeal to peers such as Linamar, Metaldyne, BorgWarner, Germany's Mahle or India's Mahindra, the people said.

Hay has annual earnings before interest, taxes, depreciation and amortisation of about 60 million euros and could be valued at six to seven times that in a potential deal, the sources said.

Gores, Hay and Rothschild all declined to comment.   Continued...