FountainVest, CPE Are Said to Near $600 Million SML Purchase (1)

Private equity firms FountainVest Partners and CPE are nearing an agreement to jointly buy SML Group Ltd. in a deal that could value the RFID and brand identification provider at more than $600 million, according to people familiar with the matter.

The parties are finalizing details of the transaction, the people said, asking not to be identified because the process is private. FountainVest and CPE, which had been seeking to buy SML separately, have now joined forces for the potential acquisition, the people said. They outbid rivals including other private equity firms, they said.

SML’s management is likely to remain ...