Doughty seals $1.1bn exit

Doughty Hanson has booked a 2.5x return following the sale of activated carbon manufacturer Norit to Cabot Corporation for $1.1bn.

UK-based buyout firm Doughty Hanson has sealed its first exit since the death of founder Nigel Doughty in February.
The firm has sold Norit, which manufactures and sells high grade activated carbon, to Cabot Corporation for $1.1 billion.

The full exit comes just over a year after it sold the clean process technologies division of Norit to Pentair for €503 million.
 
Together, the exits have netted Doughty a 2.5x return and delivered an internal rate of return of 23 percent, according to a source close to the firm.

Doughty acquired Norit in 2007 for €351 million using capital from Doughy Hanson & Co Fund V. Since then, the company has recorded EBITDA compound annual growth rate of almost 30 percent, the firm said.

Mark Corbidge, senior principal and co-head of private equity, said in a statement: “The sale of Norit concludes an excellent investment for Doughty Hanson. During our ownership, we invested significant time and capital in Norit and helped it to become a truly world class business. Our long term vision and close alignment with management have helped to drive superior returns for our investors.