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German car parts retailer Stahlgruber put up for sale - sources

FRANKFURT/LONDON, Sept 25 (Reuters) - The owners of German car parts retailer Stahlgruber have selected second-round bidders for the company as bankers prepare debt packages for a deal that could value it at more than 1.2 billion euros ($1.4 billion), people close to the matter said.

Family-owned Stahlgruber is expected to fetch a valuation of up to 10-11 times the company's expected earnings before interest, tax, depreciation and amortization of 120 million euros, the sources said.

U.S. peer LKQ, private equity group Bain, which owns competitor Autodis Group, as well as buyout firms Apax, EQT and Advent have made it to the second round of the auction, they said, adding final bids are due around early November.

Munich-based Stahlgruber was founded in 1923 as a retailer of screws and small metal parts, but soon diversified into car parts such as its Tip Top branded tyre repair gear.

Bankers are working on debt packages of 600-720 million euros to help finance a potential buyout, or 720-840 million including undrawn facilities, they said.

Senior and junior leveraged loans as well as high yield bonds are being considered, they added.

Stahlgruber and the bidders declined to comment.

The company, which last year posted 1.5 billion euros in sales, had said in late August that it was considering options including a possible sale. It is working with Deutsche Bank on the topic. ($1 = 0.8416 euros) (Reporting by Arno Schuetze and Claire Ruckin; Editing by Georgina Prodhan)