Hands heads for autobahn services

BRITISH investor Guy Hands' Terra Firma group is in lead position in a two-way race to take over a prime piece of Europe's motorway infrastructure in a deal worth up to €1.2bn (£837m).

His UK private-equity group is in competition with Heiner Kamps, the former chairman of Europe's largest bakery chain, to buy Tank & Rast, Germany's largest autobahn service stations group.

Kamps is backed by an unnamed British investor.

According to media reports in Germany, Terra Firma and Kamps are understood to have made offers of between €1.1bn and €1.2bn, including debt.

The owners, a consortium of Allianz, Apax and LSG Lufthansa Service, had earmarked the firm for flotation, but met last night to discuss a sale.

'A decision could be imminent,' said NTV-TV news.

Terra Firma and Kamps have finished due diligence, but a final deal still requires approval from the German government.

Goldman Sachs, the US investment bank, was commissioned to prepare a sale process in parallel to the option of an initial public offering.

Terra Firma and Kamps declined to comment.

Tank & Rast has about 80% of Germany's motorway service station market and owns 338 petrol stations and 382 motorway restaurants franchised to smaller companies.

The sector is booming as greater traffic volume from the East, following expansion of the European Union in May, has boosted business.