3i, the private equity group quoted on the London Stock Exchange, has announced an investment in the £56m MBO at Extec Industries, a UK-based designer and manufacturer of construction equipment for the crushing and screening industry.
3i has backed Extec’s management team, which comprises three brothers, Paul Douglas, Extec managing director, Colin, who runs the US business and Dermot who oversees the group’s German operation.
3i will have a majority stake in the business, which has sites in the UK, Continental Europe, US and Australia. Extec sells its product range internationally and is one of the leading operators players in its market. The company reported a turnover of £61m to June 2002, with overseas sales amounting to 80 per cent of total turnover.
Robin Jones, director of 3i Birmingham office, said: 'We have strong appetite to invest at this stage of the economic cycle. 3i's investment in Extec Industries demonstrates our keenness to invest in growing businesses.”
3i has completed a series of deals across a range of industries over the past two months. Last month the firm paid £15m for Leger Holidays, a coach holiday unit of MyTravel. In November 3i acquired Canvas Holidays for £25m and also acquired Rotterdam-based tank container operator United Transport Tankcontainers for E100m.
Debt for the Extec acquisition was underwritten by N M Rothschild. 3i was also advised by PricewaterhouseCoopers and Addleshaw Booth.