PE-backed Talgo prepares IPO

Kenny Wastell
01 April 2015

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Spanish train manufacturer Talgo, backed by MCH Private Equity and Trilantic Capital Partners, is preparing a flotation on the Spanish stock exchanges.

Talgo stated the offering would comprise existing shares, made available to international institutional investors.

The announcement comes four years after the business originally mooted an IPO in April 2011.

According to earlier reports by Reuters, the process could value the business at more than €1bn. The publication also anticipates a sale of around 50% of the company's shares.

Under its GP backers, Talgo has undertaken an international expansion strategy. The company stated it now generates more than half of its revenues from exports.

Talgo, which has a headcount of 1,735, generated adjusted EBITDA of €90m in 2014 with revenues of €384m.

Santander, JP Morgan and Nomura are acting as joint global coordinators in the process, while Rothschild is acting as adviser.

Trilantic and MCH purchased a 75% stake in the company, which specialises in the production of high-speed trains, for €178m in late-2005. The deal was completed the following year.