Montagu lands 3.5x return on airfield lighting business(2)

The UK-based firm has agreed to sell ADB Solutions to PAI Partners in a deal understood to be between €200m and €250m.

PAI Partners
has bought
ADB Solutions, 
an airfield

Montagu Private Equity has agreed to sell ADB Solutions, an airfield lighting business, to Paris-based PAI Partners, according to a statement. 

Financial details of the transaction, which is subject to regulatory approval, were undisclosed, but the deal value is likely to be between €200 million and €250 million, according to a market source.  A traditional auction process took place with a number of interested parties, the source added.    

The exit is understood to have delivered a 3.5x return and a 40 percent IRR. 

Montagu acquired Brussels-headquartered ADB in 2009, when it was carved out of Siemens. Montagu created an independent company, called ADB Solutions, and doubled the business profits. In addition, it assisted the company in increasing its international exposure to emerging markets including China, South America and the Middle East. Currently, 45 percent of ADB’s €160 million revenues come from emerging markets, according to the statement. 

“We see excellent potential to expand the business footprint, particularly in emerging markets, where demand for airport infrastructure is rapidly increasing,” Laurent Rivoire, a partner at PAI Partners said in the statement. The firm aims to grow the company further, both organically and through add-on acquisitions. 

This is the third exit in which Montagu nets a 3x return or more. Last month, Montagu sold ghd, a company that makes flat irons and hair dryers, to Lion Capital for €300 million. The divestment generated a 3x return. In June last year, Montagu sold German bandage manufacturer BSN Medical to EQT Partners for €1.8 billion, booking another 3x return.
Montagu and ADB used Rothschild as a financial adviser. PAI Partners was advised by BNP Paribas.