3i backs Ohio rubber business Q Holding

The firm invested $160m from its balance sheet, taking a majority stake in the rubber components maker

3i Group has acquired a majority stake in Ohio-headquartered Q Holding, a manufacturer of moulded rubber and silicone components, according to a statement.

The London-listed private equity firm has invested $160 million from its balance sheet.

Q Holding, through its subsidiaries QSR and Qure Medical, manufactures precision products for use in the automotive, medical and pharmaceutical markets, including connector seals and ignition insulators for use with electrical items, as well as a broad range of components for disposable medical and pharmaceutical items, such as catheters and syringe plungers.

The business employs more than 1,100 people across six manufacturing facilities in North America and China, selling products in more than 50 countries.

Post-investment, 3i plans to help accelerate the company’s expansion into Europe, and broaden both its product and end-market offering. Q Holding will seek to expand both through organic growth and through selective acquisitions in Europe and North America within the silicone moulding sector, 3i said.

Last week, 3i bought a majority stake in German jewellery company CHRIST, which was previously part of Advent International-owned Douglas Holdings. The firm invested around €214 million in the company using capital from its €5 billion Eurofund V, which as of March 2014 was around 90 percent deployed.

The fund’s investment period ran out in December 2011, but LPs gave the firm permission to use equity from the vehicle.

Most recently, in October, 3i booked a 2.9x return on the sale of LHi Technology to US manufacturing company Carlisle Companies in a deal valued at around $195 million, while in May the firm sold automotive engine and transmission component supplier Hilite International to AVIC Electromechanical Systems, a subsidiary of the Aviation Industry Corporation of China, generating a 2.1x return.

3i shares were up 1.51 percent Wednesday afternoon at 397.1 pence per share, giving the firm a market capitalisation of £3.86 billion.