By Sarah White and Anjuli Davies
MADRID/LONDON, Oct 16 (Reuters) - Spanish buyout firmsPortobello and Santander's Vista Capital, are sellingdiaper maker Indas, and have attracted a bid from Canadian papergroup Domtar Corp among others, banking and privateequity sources said.
Indas, which was bought by the two Spanish private equityfirms in 2007 for about 350 million euros, is Spain's top makerof incontinence pads and other hygiene products and exports toseveral European countries as well as Latin America and Africa.
Domtar has been buying diaper makers in the United Statesand Europe in the past two years to expand its personal carebusiness and lower its exposure to weak pulp prices.
Other firms such as U.S. private equity firm Blackstone had also looked at Laboratorios Indas, which could fetchbetween 300 million and 400 million euros ($540 million), butBlackstone was unlikely to stay in the running, two sourcessaid.
Portobello Capital, Vista and Blackstone declined tocomment, while Domtar said it would not comment on speculation.Five people familiar with the matter confirmed that Indas was upfor sale.
Ageing populations across the world have pushed up demandfor incontinence products - sales of adult diapers are set toovertake baby ones by next year in Japan, according to researchfirm Euromonitor.
Spain is one of the European Union countries where themedian age has risen the most over the past decade, but deepspending cuts in the recession-hit country have also hurtbusinesses in recent years.
A banking source said Portobello and Vista had bought thebusiness for around 12 times earnings before interest, taxes,depreciation and amortization, but would be selling it now atabout 7 or 8 times Ebitda, if the deal goes ahead.
This source put Indas' 2013 Ebitda at around 50 millioneuros, although other sources could not confirm the figure.
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