Two big names in the electrical equipment world have been bought out by private equity providers. Both aim to focus on core markets and increase market share.
German electrical component conglomerate the Moeller Group has been bought by Advent International Corporation, a private equity group based in Boston, USA.

Advent International Corporation has acquired 100% of the £700 million turnover Moeller Group for an undisclosed sum. Advent plans to improve the capital structure of Moeller, which includes Moeller Electric UK, and create a platform for its successful growth and enhanced competitiveness.

Ralf Huep of Advent International said: "As a world class company with a strong market position, a portfolio of high quality products and an excellent customer base, Moeller has great future potential."

The existing management team will be joined by two new board members, Uwe Alwardt and Dave McLemore. Moeller Group ceo, Theo Kubat, said: "With Advent on board we will be able to further expand our market position…we allow for the permanent future development of our product portfolio on a high technical level. The Moeller brand will play an even more decisive role in the future."

m LDC, a mid-market private equity provider is funding the management buyout of Electrium in a deal worth £38 million. Electrium brings together seven of the UK's leading brands including Wylex, Crabtree and Volex. Turnover to March 2003 was £63 million.

Martin Draper, director at LDC, said: "As a result of actions over the last two or three years, the business is well positioned to capitalise on the power of its brands. We are delighted to be providing funds for this buyout and will support the management in developing the business to its full potential."

Chris Thomas, chief executive of Electrium, said: "We are well placed to achieve future growth and it is pleasing that we have been able to secure a long-term financial structure that underpins the next exciting stage of our development strategy."

Electrium was formed in 1997 following a management buyout from the Hanson group.

Source

Electrical and Mechanical Contractor