Private equity firms are understood to be circling Kitbag, which employs around 200 staff at its headquarters in Middleton, Greater Manchester. It is also being eyed by potential trade buyers.
Findel bought Kitbag in October 2006 at the same time as it snapped up gifts and gadgets website I Want One Of Those.com, network marketing company Kleeneze and the shares in Home Farm Hampers it did not own.
In the year to April 30, 2006, Kitbag turned over £14.3m but made losses of £500,000. Findel has revitalised the business and it made profits of £500,000 in the last financial year.
Kitbag sells replica kits, equipment and accessories covering soccer, tennis, cricket, rugby and other sports.
It has agreements with Manchester United, Barcelona, Real Madrid and other leading soccer clubs as well as Formula 1, Ryder Cup and the British Lions.
Findel said in an update last Friday it was considering an equity issue as tough market conditions continue to affect its performance, and that it was delaying posting audited results for the year to April 3.
It closed its loss-making brands Cotswold Company and Letterbox last month and is in talks with lenders to extend its debt facilities.
The Manchester office of corporate finance outfit Clearwater is advising Findel on the sale of Kitbag, which could fetch around £12m.
One source told the M.E.N. today: "Kitbag has a strong management team who have turned the business around by merging sites and other measures. The company could make profits of £2.5m this year and there is considerable interest in acquiring the business."
Findel, led by chief executive Patrick Jolly, has its group headquarters in Yorkshire and last week opened a £10m HQ for its education supplies division in Hyde, Tameside.
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