Carlyle Eyes $4.6bn Exit for Luxury-Watch Parts Maker Acrotec

Carlyle Group Inc. is exploring exit options for Acrotec Group, a maker of luxury-watch parts that could be valued at as much as $4.6bn, people familiar with the matter said.

The private equity firm is interviewing banks as it considers a potential sale or listing of the Develier, Switzerland-based business, the people said. Rothschild & Co. has been chosen to oversee preparations for a potential initial public offering, according to the people, who asked not to be identified discussing confidential information. 

Carlyle may launch an exit process for the business next year, the people said. Deliberations are in the early stages, and it could still decide to hold the asset for longer. 

Representatives for Carlyle and Rothschild declined to comment.

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Acrotec supplies precision components for the watch, medical-technology, automotive, electronics and aerospace markets. Carlyle agreed to acquire Acrotec from Castik Capital in December 2020. 

Private equity firms have held off on selling businesses for much of this year, with deal activity hampered by the gulf between the amount sellers were seeking and the price buyers were willing to pay. Now buyout shops are ramping up portfolio disposals to try to satisfy investor demand for payouts, helped by a growing sentiment that central banks are done with their cycle of interest-rate hikes. 

Source: BNN Bloomberg

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