3i increases its stake in AES Engineering Limited to 40% valuing the business at

Phil Black - PII Editor 12/11/2007

259 1 minute read

Listen to this article

3i today announces it has made a further investment in AES Engineering Ltd. (“AES”), the holding company of the AESSEAL Group, which is a world leader in the mechanical sealing industry. 3i first invested in AES in 1996. This secondary investment increases its equity stake to 40% and values the business at

The new funding will allow AES to continue its impressive growth and consider acquisition opportunities worldwide.

AES was founded in 1979 by Chris Rea. Over the last 25 years, the business has achieved an unbroken track record of turnover and profit growth.

Coinciding with 3is increased investment, Hamdi Conger, previously non-executive director will become chairman of AES. The Rt Hon William Hague MP remains as non-executive director of AES and Richard Bishop of 3i will also join the board as a non-executive director. Neil MacDonald, who was previously the Finance Director at the international engineering group Firth Rixson, has joined as Finance Director.

Gordon Hague of 3i, commented: “AES is a world class business with a fantastic track record of profitable growth, an entrepreneurial leader supported by a strong team, and international growth prospects. Im delighted that 3i is able to provide significant further investment to help the company achieve its growth potential.”

Chris Rea comments: “3i has been a fantastic partner so the Board of AES is extremely happy that the growth team there will help us with the next stage of our development and on a personal level I am pleased to say that the due diligence process was much less painful than training for a marathon!”

3i was advised by Addleshaw Goddard, Leeds and due diligence support was provided by PricewaterhouseCoopers. Management was advised by Deloitte corporate finance and lawyers Irwin Mitchell.

For further information, please contact:

Gordon Hague, Investment Director, 3i Growth Capital Tel: +44 20 7975 3487

Kathryn van der Kroft, 3i Press Office Tel: +44 20 7975 3021