Moeller Group (Germany) - Dec 2007

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01 December 2007

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Exit deal

Doughty Hanson & Co has sold Moeller Group to Eaton Corporation for €1.55bn. The transaction is expected to close in the first quarter of 2008. Eaton is a diversified industrial manufacturer of electrical systems and components for power quality, distribution and control, with annual revenues of US 12.4bn. The return on Doughty Hanson’s equity investment is 3x and represents a gross IRR of 54%. Claus Felder led the exit for Doughty Hanson. During Doughty Hanson’s ownership, Moeller has increased its revenues in its core business by 26% to €960m (from April 2005 to April 2007), opened seven new operations globally and created more than 170 additional jobs worldwide. In the calendar year 2007 Moeller expects revenues of approximately €1bn and an EBITDA of approximately €170m. The investor and the management team of Moeller have expanded the market position, driven product innovations and developed the international growth of the business. In addition to numerous operating improvements, a particular focus has been the upgrade of existing sites in Germany. Moeller has also accelerated its expansion in Central and Eastern Europe, where it has established new assembly facilities in Russia and Serbia and expanded its activities in India, China and Brazil. Moeller is a global manufacturer of systems and components for power distribution and automation in industrial, infrastructure and residential building applications. Based in Bonn, Moeller employs approximately 8,800 people. Its operations encompass 15 production facilities globally and the company is represented in more than 90 countries. Previous funding Advent International acquired Moeller in December 2003 from the family owners in a buy-in management buyout estimated to have been valued at €500m-700m (January 2004, page 19). During a secondary buyout, Doughty Hanson acquired a majority stake in Moeller in September 2005 for €1.1bn including pension liabilities a

Advisers

Equity - PricewaterhouseCoopers, Christian Knechtel, Clive Adendorff, David Blake, Hatto Schick, Matthias Bühler, Richard Burton, Stefanie Ehlers (Financial Due Diligence)Equity - Skadden Arps Slate Meagher & Flom, (Legal)Equity - UBS International, (Corporate Finance)Purchaser - Morgan Stanley, (Other Consultant)