Goldman nears deal for events company PSAV -sources

Reuters

By Greg Roumeliotis

NEW YORK, Nov 19 (Reuters) - Goldman Sachs Group Inc's private equity arm is nearing a deal to acquire eventsservices company PSAV Presentation Services for close to $900million, according to people familiar with the matter.

The deal for the company - currently owned by private equityfirm Kelso & Co - could be announced as early as this week, oneof the people said. Kelso acquired PSAV for $413.4 million in2007.

PSAV is the largest provider of audiovisual services to theU.S. hotel industry and helps coordinate events and meetingsusing high-definition projectors and plasma screens.

The Long Beach, California-based company has earnings beforeinterest, tax, depreciation and amortization of between $130million and $140 million, people have previously told Reuters.

A deal for Goldman would come after it changed the way itinvests in private equity to comply with the so-called Volckerrule that is expected to limit investment bank investments inilliquid asset classes.

In a bid to pool money for deals without raising a privateequity fund, the Wall Street bank has been underwriting theequity in deals and then lining up clients who are willing toput money into accounts set up to invest in them, peoplefamiliar with the matter said earlier this year.

A Goldman Sachs spokeswoman declined to comment. Kelso andPSAV did not immediately respond to requests for comment.

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