Venture firm 'to sell Ballygowan'

PRIVATE equity group BC Partners is considering a sale of C&C Group, the Ballygowan water and Tayto crisps company, as well as a public flotation that would value the Irish firm at more than e1 billion euros (£700 million).

It is believed that a memorandum has been sent to interested drinks companies and other private equity groups.

Although insiders stress that an initial public offering is the favoured option with a listing in both London and Dublin, BC Partners has accepted that it would be unwise to rule out a trade sale of the company.

C&C was forced to shelve a flotation in June 2002 after the stock market dived. One source said: 'They would like to keep this quiet, but an informal auction process is under way. There is a feeling that it remains difficult to float this business.'

In 1999, BC Partners led a £519 million management buyout of C&C, which also owns Club Orange, Tullamore Dew whiskey and Carolans liqueur, from drinks giant Allied Domecq.

Last year it sold Barbero 1891, a wine and liqueur business, to Italian drinks group Campari for e150 million (£105 million) in a move that reduced C&C's debt by a third and helped ready it for sale.

BC Partners, which is believed to be advised by investment banks Citigroup and Goldman Sachs, declined to comment.