Doughty Hanson & Co, the London-based mid-market firm, has announced a price for the listing of portfolio company HellermanTyton.
Shares in the cable business will be offered at 195p, close to the lower end of the 190p – 235p range specified prior to the IPO. This values the company, which is about to list 50.5 percent of its shares on the public market, at nearly £419.9 million (€495.1 million, $636.2 million).
Total proceeds from the IPO will amount to £211.9 million, comprising £29.9 million raised by HellermanTyton for its own development and £182.1 million returned in cash to Doughty Hanson.
This will represent a 1.1x return for the firm, which will thus fully repay its original investment in the company by selling only half its stake. It will retain a 46.1 percent holding after completion of the listing, subject to a 180-day lock-up period.
“I am very pleased with the outcome of the IPO, which received an excellent response from major institutions and demonstrates that investors share our confidence in the outlook for our business,” Steve Salmon, chief executive of HellermanTyton, said in a statement.
Headquartered in Manchester, UK, the company provides cable management products and services to clients operating in the electrical, automotive and datacom industries. It generated revenues and EBITDA of €514.2 million and €100.4 million respectively last year, and counts around 3,300 staff.
Doughty Hanson bought the business in 2006, in a transaction financed by its Fund IV, a 2003 vintage which closed on €1.59 billion. It is now on the trail to raise its Fund VI, which has a €3 billion target.
Last month, the firm also announced its intention to cease real estate and venture technology investing, to focus on its core private equity business. The decision was taken in the wake a strategic review following the death of Nigel Doughty, one of the UK’s best known entrepreneurs and co-founder of the firm, in February last year.
It completed a subsequent restructuring in June, after which co-founder Richard Hanson resumed his role as head of private equity and executive chairman.
The HellermanTyton listing is the latest lucrative exit by the firm, after a year that saw it reap a 2.5x return on the trade sale of Norit, an activated carbon business, and a 2x return on the New York IPO of Tumi Holdings.