(Bloomberg) -- ZF Friedrichshafen AG, an auto parts supplier to the likes of BMW AG, has picked banks for a potential initial public offering of its passive safety systems division, according to people familiar with the matter.

The privately-held engineering group has selected Goldman Sachs Group Inc. and BNP Paribas SA to work alongside Citigroup Inc. on the listing, they said, asking not to be identified discussing confidential information. The deal is expected to value the business at between €3 billion ($3.2 billion) and €4 billion including debt, with a listing in Frankfurt expected as soon as September or October, the people said.

No final decision has been made on the outcome, timing or valuation, they said.

ZF first announced plans to carve out the passive safety unit, which makes products including seat belts and airbags, in 2022. It re-branded the business earlier this year as ZF Lifetec, and said at the time it was exploring strategic options including a full or partial sale, as well as an IPO. It also announced 2023 sales for the unit of €4.7 billion.

The company hired Citigroup Inc. to advise on the possible sale, Bloomberg News reported last year.

A representative for ZF said that the firm is considering all options for Lifetec. Citigroup, Goldman and BNP spokespeople declined to comment.

ZF takes its name from its headquarters in Friedrichshafen, the southern German town on Lake Constance. It can trace its roots back to airship pioneer Ferdinand von Zeppelin.

The company decided to pursue an IPO in part due to the successful listing of Schott Pharma AG by Schott AG, a privately held maker of specialty-glass products owned by the Carl Zeiss Foundation, one of the people said. Schott Pharma shares are up around 48% from their September listing price.

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