(In last paragraph, corrects UBS’s role to co-leading the IPO rather bookrunner)
LONDON, May 28 (Reuters) - Belgian diaper maker Ontex announced plans on Wednesday to list on Brussels’ Euronext stock exchange, which two sources familiar with the matter said could give the business an enterprise value of up to 1.9 billion euros ($2.6 billion).
Ontex said it would sell 325 million euros of new shares and an as-yet unconfirmed number of existing shares to institutional and retail investors in order to pay down debt.
The company, which is owned by private equity firm TPG and Goldman Sachs and makes hygiene products including baby diapers, plans to list at least 25 percent of its issued share capital.
TPG and Goldman Sachs acquired the firm in 2010 for a reported 1.2 billion euros. The business had net debt of 862 million euros as of March 31 this year.
“The IPO is the logical next step for Ontex,” said Chief Executive Charles Bouaziz.
“We will become a newly listed Belgian company, with the enhanced capital markets profile to support our growth strategy.”
Ontex had revenues of 1.5 billion euros and adjusted core earnings (EBITDA) of 174 million euros in 2013. A value of 1.9 billion euros including debt would give the company an EBITDA multiple of 10.9, in line with U.S. competitor Kimberly Clark , currently trading at 10.5.
The listing is being led by Bank of America Merill Lynch , Goldman Sachs and UBS. JP Morgan is a bookrunner. ($1 = 0.7345 euros) (Reporting by Freya Berry; Editing by Clare Hutchison and Susan Fenton)