The Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC are in advanced talks to acquire a minority stake in Pye-Barker Fire & Safety in a deal that would value the company at more than US$6 billion including debt, according to people with knowledge of the matter.
The two sovereign wealth funds are discussing purchasing the stake from Pye-Barker Fire & Safety’s investors Leonard Green & Partners and Altas Partners, said the people, who requested not to be identified discussing confidential talks.
A deal has not been finalised and talks could collapse at the last minute.
Representatives for GIC, Leonard Green and Altas declined to comment.
Representatives for ADIA and Pye-Barker Fire & Safety did not immediately respond to requests for comment.
The Atlanta-based company was founded by Georgia Institute of Technology graduates John Pye and Ben Barker in 1946, according to its website.
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Pye-Barker installs, services and monitors fire alarms, sprinklers, extinguishers and other safety products to businesses such as restaurants, apartment complexes and data centres.
Amid a gap in valuation expectations from buyers and sellers, institutional investors including sovereign wealth funds and pension funds have more frequently stepped in to acquire minority stakes in companies, which enables sellers to obtain some liquidity.
Mubadala Investment was near a deal to buy a minority stake in Zelis in a deal valuing the healthcare technology company at about US$17 billion, Bloomberg News reported last month.
Also in October, a consortium including Neuberger Berman, EQT and the Canada Pension Plan Investment Board agreed to buy a stake in international school operator Nord Anglia at a valuation of US$14.5 billion including debt. BLOOMBERG
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