Doughty Hanson makes £119m from cable maker stake

The UK based mid-market firm’s stake in HellermannTyton is now down to just over 20 percent, following this latest sale and a successful IPO in March.

Doughty Hanson has sold a further 20.9 percent stake in the Manchester-based HellermannTyton Group, the cable management specialist, for around £119 million.

The firm bought HellermannTyton in 2006 through its Fund IV, a 2004 vintage which closed on €1.59 billion. A successful initial public offering in London delivered a return of £182 million to the fund in March, equating to a return of roughly 1.1x for about half its stake. With this latest placement, Doughty Hanson sold a further 45 million shares at 265 pence each, leaving the firm with a 21.6 percent stake in the company (46.6 million shares).

HellermannTyton, which employs around 3,300 staff across 34 countries, generated revenues of €514.2 million and EBITDA of €100.4 million last year. Its key markets include the electrical and automotive sectors.
Shares in the company closed at 282 pence on Wednesday on the London Stock Exchange, which represents a rise of 45 percent since its listing in March.

The partial sale marks another successful realisation for Doughty Hanson, following its £935 million sale of Vue, the European cinema chain, in June – which more than doubled the group’s initial investment. It is currently in the market with Fund VI, its first new vehicle since the death of co-founder Nigel Doughty in February 2012, which has a €2 billion target.