European private equity firm CVC Capital Partners (CVC) has agreed to sell 100 percent of the share capital in Trench Electric Holdings, a high voltage components manufacturer, to Siemens, the German electronics group, for $340 million (€285 million).
CVC acquired Trench in an MBO from BBA, an aviation services provider, in September 1997, in a transaction valued at $266 million. The sale is expected to complete in the second half of this year, subject to receiving regulatory approval.
Trench Electric is a UK-headquartered, global power engineering company, incorporating the design of specialised electrical products. Last year, the company posted sales of $280 million and operating income of $42 million.
In a statement, Marc Boughton, London-based partner of CVC, said: “CVC has supported Trench’s international expansion including its growth in China and Brazil. Trench is now a world leader in its specialised field and has been a very successful investment for CVC.”
CVC is currently investing from its €4.65 billion CVC European Private Equity Partners III Fund, which closed in June 2001 and is more than 50 percent committed.
CVC was founded in 1981 as Citigroup’s European private equity arm and completed its own MBO in 1993. It currently has total global funds under management of over $9 billion.