(Bloomberg) -- Sun European Partners is considering a sale of Flamingo Horticulture Ltd., a supplier of flowers and vegetables to leading supermarkets such as Tesco Plc and Aldi Stores Ltd., according to people familiar with the matter.
The private equity firm is working with advisers to identify potential buyers for Flamingo, which could be valued at more than 1 billion euros ($1.2 billion) in a deal, the people said, asking not to be identified discussing confidential information. The business is likely to draw interest from other buyout firms, as well as strategic bidders, the people said.
Deliberations are in the early stages and no final decisions have been made, according to the people. A representative for Sun declined to comment.
Sun European is the regional affiliate of U.S.-based Sun Capital Partners Inc. The private equity firm agreed to buy the business that would become Flamingo from James Finlay Ltd. in 2015.
Flamingo runs flower and vegetable farms in Kenya and South Africa and grows everything from roses and carnations, to broccoli and beans. In 2017, Sun bought a majority stake in rose farmer Afriflora, alongside founders the Barnhoorn family, from KKR & Co.
A sale of Flamingo would add to $1.3 trillion of transactions in a booming consumer sector that has seen deal values rise 80% year-on-year in 2021. Buyout firms Fortress Investment Group and Clayton Dubilier & Rice LLC are set to face off in an auction for Wm Morrison Supermarkets Plc, while Unilever Plc is selling large parts of its tea business in a deal that could be valued at about 4 billion pounds ($5.4 billion).
Founded in 1995, Sun oversees about $13 billion in committed capital. The firm has already exited a number of investments this year, including furniture group Sharps and mattress specialist Dreams.
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