AES Engineering Ltd (United Kingdom) - Oct 2007

3i has completed an undisclosed investment in AES Engineering Ltd, holding company of mechanical sealing company AESSEAL Group, taking its holding in the company to 40%. Founder and CEO Chris Rea retained his majority interest. 3i originally invested in 1996 to take a significant minority stake in the business (16 December 1996, page 17). Since this time the company has grown substantially, with this latest investment representing an enterprise value of £100m. The capital will be used to continue the company’s organic growth, as well as fund strategic acquisitions internationally.

Company

Founded in 1979, Rotherham-based AES is a specialist producer of mechanical seals and support systems. The company has experienced unbroken profit and turnover growth since its inception and, since the investment of 3i, this has reached a rate of 25% per annum. The business is represented in 60 sites across 30 countries and is now the fourth-largest mechanical seals company in the world, exporting to 83 countries worldwide and with a turnover of £66m.

People

Gordon Hague led the investment for 3i, which has appointed Richard Bishop to the AES board. Chris Rea is the founder and CEO of the company.

Advisers

Equity - Addleshaw Goddard, Yunus Seedat (Legal)Equity - PricewaterhouseCoopers, (Commercial Due Diligence)Management - Deloitte, Martin Jenkins (Corporate Finance)Management - Irwin Mitchell, Kevin Cunnigham (Legal)

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• Topics
• UK / Ireland
• Expansion
• Support services
• United Kingdom