The private equity firm that was co-founded by U.S. presidential candidate Mitt Romney has prevailed over Platinum Equity LLC and American Securities LLC in the auction for the maker of industrial hand and power tools, the people said.
Bain is expected to pay between $1.5 billion and $1.8 billion for the business, the people familiar with the matter said, asking not to be named because the negotiations are not public.
Apex Tool Group has about $225 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and the owners were hoping to fetch 8 times EBITDA in a sale -- or an enterprise value of around $1.8 billion -- people familiar with the matter said.
A deal may be finalized in the next several days although talks could still fall apart, the people cautioned. Representatives of Bain declined to comment while Apex did not respond to a request for comment.
Reuters reported on August 23 that Bain, American Securities and Platinum Equity were among the final bidders for Apex Tool Group.