Starwood might sell Baccarat to an undisclosed Chinese company

US private investor Starwood Capital is offloading French crystal glassware manufacturer Baccarat, according to L’Agefi.

Reuters picked up on the report by the financial news provider, which cited multiple sources as saying the vendor hopes to raise as much as EUR 200.00 million from a sale of the Euronext-listed business and had appointed Messier Maris & Associes to advise on the process.

The people added that a number of potential suitors have thrown their hats into the ring and the best offer so far was made by a Chinese party.

Specifics of this approach were not disclosed, but one person in the know stated that it is close to the valuation Starwood hopes to achieve.

None of the parties involved have commented on the report as yet.

Starwood’s ownership of Baccarat dates back to its purchase of Reims-headquartered wine maker Taittinger in early 2006.

Based on the target’s close of EUR 218.00 on 18th May, the last trading day prior to the deal being reported, the company can be valued at EUR 181.10 million.

Baccarat posted revenue of EUR 33.23 million in the first quarter of 2017, up from EUR 29.16 million over the corresponding timeframe in 2016.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been six deals targeting pressed and blown glass and glassware manufacturers announced since the beginning of 2017.

Only one of these deals had a disclosed value; this involved Wuhan Dayong Investment Management buying a 52.4 per cent shareholding in Chinese safety glass maker Wuhan Wuyao Safety Glass for USD 23.18 million.

Other companies in the sector to have been targeted during the year to date include China-based Chenzhou Kibing Photovoltaic Photoelectric Glass Co, Malaysia-headquartered CSG Glass and Russian player Novgorodskii Zavod Steklovolokna.

© Zephus Ltd

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