HellermannTyton is set to raise €35 million (£30 million) through listing on the London Stock Exchange to fund bolt-on acquisitions.
The fundraising will achieve a partial exit for private equity backer Doughty Hanson, a London-based firm which first acquired HellermannTyton back in 2006 for £289 million though its Fund IV.
Manufacturing business HellermannTyton is headquartered in Luxembourg and produces high-performance cable products. Its two largest end markets are the electrical and automotive industries.
The initial public offering (IPO) will be chaired by David Newlands, alongside independent non-executive directors Tim Hancock, John Biles and David Lindsell.
Newlands comments, ‘During the period of Doughty Hanson’s ownership, the [business] has expanded its global footprint and increased its capabilities in emerging economies and end markets exposed to structural growth drivers.
‘HellermannTyton is set to benefit from its market-leading positions and its exposure to attractive sector brands.’
Under the terms of the listing, the offer will comprise of new and existing shares. The gross primary proceeds of €35 million will be used to provide a more flexible capital structure and potential bolt-on acquisitions. It is expected that the process will complete at the end of March and that the company will be eligible for inclusion in the FTSE UK Index Series at the quarterly review in June 2013.
Steve Salmon, chief executive of HellermannTyton, says, ‘Our products continue to increase their penetration in each of our end markets, which has allowed HellermanTyton to deliver strong organic growth.
‘I am delighted to announce this step today, which will build on our existing brand profile, helping us to achieve our continued objective of delivering organic growth of 3-4 per cent above global industrial production, supplemented by potential value-enhancing bolt-on acquisitions.’