October 28, 2015 / 5:19 PM / 2 years ago

UPDATE 1-Bain Capital to sell or list clutch maker FTE - sources

3 Min Read

* Bain retains Rothschild to look into options for FTE-sources

* Bain hopes to raise 650-750 mln euros from sale-sources

* Germany's auto components suppliers have seen wave of deals (Adds car parts industry background)

By Arno Schuetze

FRANKFURT, Oct 28 (Reuters) - U.S. buyout group Bain Capital is preparing to sell or float car parts maker FTE Automotive to take advantage of high sector valuations, two people familiar with the matter said.

After receiving expressions of interest from Asian groups, Bain asked Rothschild to sound out options for the clutch and brake-systems maker including a sale or initial public offering which could take place as early as mid-2016, the sources said.

Bain and Rothschild declined to comment.

Bain bought FTE in 2013 for 400 million euros ($443 million)and is hoping to raise 650-750 million from a sale of the group, the sources said, while potential bidders may only offer to pay 500-600 million.

According to a 2013 bond prospectus, FTE posted adjusted earnings before interest, taxes, depreciation and amortisation of 71.4 million euros in the year ended March 31, 2013 on revenues of 434 million.

The company, which supplies groups like Volkswagen , General Motors, Ford, PSA and Daimler, has since grown strongly, thanks partly to the acquisition of a unit of Scandinavian Brake Systems in 2014.

Germany's auto components suppliers have seen a wave of merger and acquisition deals over the last year as the industry's leaders seek to expand their product portfolios, driving up valuations.

In recent months in Germany, Mann + Hummel bought U.S. peer Affinia, Canada's Magna bought Getrag and Mahle acquired U.S.-based Delphi's air-conditioning unit.

Currently, supplier groups like Tekfor and Schlemmer are up for sale, while Edag and Jost are preparing initial public offerings.

Fahrzeug Technik Ebern or FTE, originally a part of bearings maker FAG, was bought in 1993 by British group Echlin, which was later acquired by U.S.-based Dana. In 2002, private equity firm HgCapital acquired FTE and sold it on to peer investor PAI in 2005. ($1 = 0.9037 euros) (Additional reporting by Robert Smith and Freya Berry; Editing by Ludwig Burger and Adrian Croft)

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