Sign In

Search Press
Looking for press releases of a particular company? Enter company name (or keyword) here.


Advent exits Moeller

Bonn, Frankfurt – 20th July 2005 – Advent International, the global private equity firm, today announced the sale of Moeller Group, one of Europe’s largest suppliers of lowvoltage electrical distribution and automation components for industrial, commercial and residential use, to UK-based private equity firm Doughty Hanson & Co. The purchase price is €1.1bn including pension liabilities and financial debt. The transaction is subject to regulatory approval and is expected to close in August 2005.

Advent International will consider reinvesting a portion of its sale proceeds in Moeller following the close of the transaction.

Moeller has successfully undergone a major corporate turnaround since Advent acquired the business in December 2003. At the time of the investment, Moeller was a world-class company with strong market positions, a portfolio of high-quality products and an excellent customer base. However, the group had experienced frequent management and strategy changes, a lack of financial transparency and over-diversification, leading to significant losses.

Moeller exemplifies one of Advent International’s key buyout strategies – focusing on improving the performance of businesses through strategic restructuring. Post acquisition, Advent worked closely with management and two Advent operating partners (advisers from industry) to develop a value-creation plan centred on refocusing Moeller on its core components business.

Within the first 12 months of Advent’s ownership, a strategic disposal programme delivered over €100m in cash proceeds, and the company returned to operating profitability. The remaining core business has since generated an organic growth rate of some 14%, against an industry average of 4-5%, and has significantly paid down net financial debt to less than €50m as of fiscal year-end April 2005. In its core business, the company generated revenues of €760m in 2004/05.

Theo Kubat, CEO of Moeller Holding GmbH, said: “Since Advent International invested in the business, Moeller has staged an incredible financial recovery. We were significantly loss-making two years ago, and today we are enjoying double-digit sales growth rates. Doughty Hanson’s investment will help us to solidify our market-leading position and support a long-term growth strategy by capitalising on opportunities in Eastern Europe and Asia.”

Ralf Huep of Advent International said: “We are delighted with the progress the company has made in refining its strategic focus and returning to profitability. Thanks to a high quality management team and strong employee base, Moeller has overachieved on the plan to refocus the business on its core strengths, increase its market penetration and take advantage of global growth markets. The business is in great shape today, and we wish management and employees the very best in the next phase of their development. We are highly optimistic about Moeller’s success in the future and will consider reinvesting a portion of the proceeds from the sale post closing.”

Mr. Huep continued: “Strategic restructuring deals are one of the investment scenarios in which Advent specialises. We are pleased to have been able to drive operational improvements and create significant value in the business by drawing on our key strengths and resources; namely strong industrial and sector knowledge, involvement of specialist operating partners, multi-territory presence and positive track record in cooperating with unions and labour forces.”

Claus Felder from Doughty Hanson said: “High-quality engineering, strong brand names, a state-of-the-art product portfolio and leading market positions are some of the key features which make Moeller an excellent company. We look forward to working with management to further develop Moeller’s key strengths and to take advantage of existing growth opportunities in Eastern Europe and Asia.”

Morgan Stanley acted as sole financial advisor to Advent in this transaction.


Publisher Contact Information:

Advent International plc
+49 (0)69 92037 142

Company profile of Advent International plc
Past press releases of Advent International plc.


Tech investments
From our Online Data Service
VC-backed companies
From our Radar

Recent Deals

Nov 25€24.0MInternet commerce
May 30€15.0MBiopharmaceuticals
May 28€15.0MDiagnostics
May 28€1.3MInternet services
May 25€1.0MOther Software
May 22N/AInternet services
May 20€4.3MArtificial Intelligence

For information on Europe's most extensive database on technology funding click here!


Press Releases

May 28
identiq raises $5m seed, launches privacy-first identity validation...

Apr 29
nethone raised over $1 million from innovation nest

Mar 31
the fit allocates chf 100'000 to comppair technologies

Jan 29
yumpingo raises $10m to transform guest experiences in restaurants

Oct 1
The Link App
the link app launches version 2.0

About usContact usLegal Information
Copyright © 1999-2019
Emerging Technology Research Europe Inc. All rights reserved.