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3i sells remaining stake in Philbro

The overall investment in the animal health business generated a 1.7x return for the London-listed group

 3i Group has sold its remaining 4.7 percent stake in Philbro Animal Health, generating proceeds of £36 million (€48.8 million; $55.5 million), according to a statement from the firm.

The London-listed group has received total proceeds from its stake in Philbro of £149 million (€202 million; $230 million) and a total return on investment of 1.7x.

Headquartered in Teaneck, New Jersey with offices across the US and around the world, Philbro manufactures and distributes more than 550 specialty animal health and mineral nutrition products for use in the production of poultry, swine, cattle, dairy and aquaculture. The company has around 1,000 employees, more than 2,500 customers around the world and combined annual sales of more than $500 million, 3i said.

3i invested in Philbro in March 2008 to “support its international expansion strategy and to allow for a more diverse product portfolio”, according to the firm’s website. Under 3i the company has grown in emerging markets, in particular in Brazil, Russia, South Africa, India and China.

In 2009 Philbro acquired vaccines specialist ABIC and nutritionals business Baltzell. 3i also appointed Carol Wrenn, former CEO of Alpharma, to Philbro’s board, helped the company refinance its existing debt and “reviewed a number of international growth opportunities”.

Philbro floated on the NASDAQ in April 2014 offering 14.7 million shares at $15 per share. Through the IPO 3i reduced its stake in the company from 30 percent to 7 percent, and a $24 million loan outstanding from 3i to Philbro was repaid. In total, proceeds to 3i were around £67.6 million (€92 million; $104 million).

Earlier this month 3i realised around £76 million (€103 million; $117 million) through the IPO of Eltel, a Finland-headquartered provider of technical services to the Infranet industry, on Nasdaq Stockholm. 3i and fund managed by the group reduced their stake in Eltel from 62.6 percent to 25.2 percent in the offering which priced shares at SEK 68 (€7.12; $8.11) per share, raising SEK 2,493 million (€261 million; $297 million), implying a market capitalisation of SEK 4,258 million (€446 million; $508 million).