European private equity house BC Partners [BCPRT.UL] is in exclusive talks to buy a majority stake in Israeli furniture maker Keter Plastic in a deal that could value Keter at nearly $1.6 billion, according to a source familiar with the talks.

Keter's owner, Sami Sagol, and his advisers had previously selected BC Partners along with U.S. buyout fund Carlyle (CG.O) and CVC [CVC.UL] to submit binding offers.

"BC Partners has won exclusivity and is discussing the acquisition of a majority stake. The deal values the business at close to $1.6 billion," the source told Reuters on Wednesday.

Keter Plastic, which is part of Keter Group, was not commenting on the report, according to a spokeswoman in Israel. A spokeswoman at BC Partners was not immediately available for comment.

Israeli news website Globes reported the deal was for an 80 percent stake in Keter Plastic which specializes in resin-based storage solutions, do-it-yourself products and household goods, including plastic garden sheds and bathroom cabinets. It will also give BC Partners an option to buy the remaining shares, Globes said.

Sagol, who was born in Turkey and moved to Israel at the age of 15, has turned Keter Group from a small workshop in Jaffa into a global provider of household products to about 25,000 international retail outlets.

Keter Group operates 29 plants in Israel, Europe and the United States and employs about 1,400 people in Israel.

 

Source : reuters.com

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