Private Equity News & Analysis

European Capital books 53% return in weighing group exit

The London-listed affiliate of American Capital has made its final exit from supplier of industrial weighing machines Avery Weigh-Tronix in a deal worth around €100m, having already disposed of the business’ retail arm last September.

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European Capital has realised a 53 percent annual return on its equity investment in Avery Weigh-Tronix, a maker of industrial weighing machines.  It has sold its remaining holding in the company to publicly traded US conglomerate Illinois Tool Works.

ITW: weighing in

European Capital made its initial investment in Avery Weigh-Tronix in July 2006, buying the business for €80 million ($115 million). It subsequently disposed of the company’s retail weighing business, which supplies scales for use in supermarkets, for €37 million in September 2007.

ITW purchased the remaining part of the business for around €100 million, representing a 5 percent premium over the asset’s second quarter 2008 valuation.

Giles Cheek, director of European Capital Financial Services, said in a statement that Avery had “changed significantly during the period of our ownership to become a more focused and efficient company”.

ITW is frequently involved in transactions with financial sponsors. In August this year the conglomerate disposed of Unipac, a specialty container sealing company, to Behrman Capital for $106.5 million. In April 2007 mid-market private equity firm American Industrial acquired ITW’s precision measurement division for an undisclosed sum.