3i records 7x on secondary sale

A Unitas-led consortium will buy hydraulic cylinder manufacturer Hyva, whose sales in emerging markets have soared under 3i’s ownership.

3i Group will sell Hyva – a hydraulic cylinder manufacturer whose turnover has grown three-fold since 3i backed its management buyout in 2004 – to a consortium led by Asia-focused private equity firm Unitas Capital.

Publicly listed 3i said the deal valued Netherlands-based Hyva at €325 million and represents a return of 10 times its original €125 million investment in the company. Taking into consideration an additional investment made last year, 3i said the overall return multiple would be 7x.

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Since 2004, Hyva’s emerging markets sales have grown to be 73 percent of total sales, up from 23 percent. The 31-year-old company, which employs 1,750 people in 32 countries, is expected to record revenue of €490 million this year, according to the statement.

3i partner Menno Antal said in the statement the company had grown its turnover and EBITDA three-fold under 3i’s ownership and was confident the company would continue to prosper under Unitas’ direction.

Unitas partner and chief investment officer John Lewis called Hyva an “entrepreneurial business with market leading positions in three of the four BRIC economies”.

Credit Suisse was 3i’s financial advisor, while Allen & Overy was legal advisor. Bank of America Merrill Lynch, Goldman Sachs, Nomura and Standard Chartered gave financial advice to Unitas, while legal advice was given by Weil, Gotshal & Manges.