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German car interiors maker Novem targets summer IPO -sources

FRANKFURT, April 28 (Reuters) - Germany’s Novem is reviving plans for a stock market flotation that could value the maker of car interiors at 1.3-1.5 billion euros ($1.6-1.8 billion), people close to the matter said.

Novem was founded in 1947 as a supplier of wooden steering wheels, before expanding into products like belt lines, central consoles, instrument panels and door cladding.

Based in Vorbach near Bayreuth, Novem now supplies carmakers including Audi, BMW, Daimler, Porsche and Maserati with door trim and decorative function elements for interior parts such as dashboards.

The Dutch billionaire Brenninkmeijer family, best known for its fashion retailer C&A, owns Novem through its fund Bregal Unternehmerkapital and is working with JPMorgan and Berenberg on the initial public offering (IPO), which could be announced as soon as the end of June, the sources said.

The fund initially started preparations for an IPO or sale of Novem in 2019 but abandoned the plans due to the muted sector outlook at the time.

Bregal Unternehmerkapital, which has 4 billion euros in assets under management, declined to comment. Novem, JPMorgan and Berenberg also declined to comment.

Novem employs 6000 staff and posted earnings before interest, tax, depreciation and amortisation of about 120 million euros on revenues of about 650 million euros in its fiscal 2019/20 year ending in March.

In 2020/2021, sales declined by less than 10%, while its EBITDA margin saw a slight increase.

In March, Moody’s lifted Novem’s credit rating outlook to stable, citing the recovery in its revenue and margins from the trough of the pandemic. ($1 = 0.8290 euros) (Reporting by Arno Schuetze; Editing by Alexander Smith)

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