Advent sells Moeller to Doughty Hanson for EUR 1.1bn

Guy
20 July 2005

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Moeller Group is one of Europe’s largest suppliers of low-voltage electrical distribution and automation components for industrial, commercial and residential use. The transaction is subject to regulatory approval and is expected to close in August 2005. Advent International will consider reinvesting a portion of its sale proceeds in Moeller following the close of the transaction.

Moeller has successfully undergone a major corporate turnaround since Advent acquired the business in December 2003. At the time of the investment, Moeller was a world-class company with strong market positions, a portfolio of high-quality products and an excellent customer base. However, the group had experienced frequent management and strategy changes, a lack of financial transparency and over-diversification, leading to significant losses.

Within the first 12 months of Advent’s ownership, a strategic disposal programme delivered over EUR 100m in cash proceeds, and the company returned to operating profitability. The remaining core business has since generated an organic growth rate of some 14%, against an industry average of 4-5%, and has significantly paid down net financial debt to less than EUR 50m as of fiscal year-end April 2005. In its core business, the company generated revenues of EUR 760m in 2004/05.