NEW YORK (Reuters) - KKR & Co LP and Apollo Global Management LLC are among a handful of private equity firms considering a buyout of KAR Auction Services Inc , according to several people familiar with the matter, in a deal that could top $4 billion.
Reuters first reported in August that the vehicle auction company, which has a market value of roughly $2.5 billion and debt of about $1.8 billion, has held exploratory talks with buyout firms about a potential leveraged buyout.
KAR Auction is in the early stages of buyout discussions after hiring investment bank Evercore Partners
Kelso & Co, Goldman Sachs Capital Partners
KAR Auction declined to comment while its main shareholders did not respond to a request for comment. KKR and Apollo also declined to comment.
Carmel, Indiana-based KAR Auction, through its used-car wholesale auctions arm ADESA Inc, is No. 2 in U.S. whole car auctions behind Cox Enterprises Inc's Manheim unit, according to Standard & Poor's.
(Reporting by Greg Roumeliotis and Soyoung Kim in New York; Editing by Jeffrey Benkoe)