SML has shortlisted a number of private equity firms, including Platinum Equity, for a potential takeover of the company, according to three sources familiar with the matter.

In addition to Platinum, CPE has also advanced to the next round of bidding, according to the first two sources.

The final binding bid deadline is scheduled for early September, the first and second sources said.

Boyu Capital and FountainVest Partners have also been shortlisted, the first source added.

As previously reported by this news service on 24 July, non-binding offers were due that date.

The Hong Kong-based radio frequency identification (RFID) garment label maker is being marketed with an EBITDA of about USD 70m. The deal could value the company at around USD 700m, as reported.

Multiple bids are in the range of 7x–8x EBITDA, or even higher, according to the second source.

As reported on 24 June, SML is exploring a potential stake sale and has appointed Jefferies as its financial advisor for the transaction.

Founded in 1985, SML provides item-level RFID, brand identification, and printing and encoding solutions, according to its website.

In addition to its headquarters in Hong Kong, the company has regional offices in Germany and New Jersey, US. Its item-level RFID operations are based in Texas, US.

Jefferies declined to comment. Boyu, CPE, FountainVest, Platinum and SML didn’t respond to requests for comment.