Permira has bid for French animal nutrition company Provimi, part owned by private equity firms CVC Capital Partners and PAI Partners, a statement said. Permira has made an offer of €30 ($38) per share for 74 percent of the share capital.
The private equity firm is said to be preparing a tender offer for the remaining shares, which are listed on Euronext Paris.
The company has a market capitalisation of €842 million.
CVC and PAI bought a 54 percent stake in the company from Italian energy group Edison in 2002 for €203 million ($262 million) with the condition that the firms would refinance Provimi’s €500 million debt. After making a tender offer for publicly held shares, CVC and PAI owned 74 percent of the business.
It would be Permira’s first investment in the animal feed sector and its eighth investment in France.
Provimi has 100 production centres in 28 countries. Provimi manufactures products and supplies technical support for animals. The group has its headquarters in Rotterdam.
In 2005 the company reported revenues of about $1.5 billion and net profit of €55 million.
Credit Suisse and JP Morgan are advising Permira, according to sources close to the situation.
Last month Permira sold Rodenstock, a German manufacturer of ophthalmic lenses for spectacles, to European private equity firm Bridgepoint for an undisclosed amount.