CVC set to gain more than [pounds sterling]500m from Halfords float.

Financial News, January, 2004

Byline: Michael Herman

CVC Capital Partners, the private equity firm, could make up to [pounds sterling]570m ([euro]394m) disposing of Halfords, the UK car accessories chain, which has been valued at up to [pounds sterling]1bn in a flotation.CVC acquired the company for [pounds sterling]427m in July 2002. A flotation this summer will see CVC make a significant profit on its equity stake. CVC could make more than [pounds sterling]570m depending on the equity-debt structure of the deal which was not disclosed at the time of the purchase. CVC declined to comment.

Sources close Deutsche Bank, which has an existing relationship with Halfords, confirmed it was in the running to advise CVC. Deutsche advised Boots, the previous owner of Halfords, on its sale...

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