The deal provides an excellent return for LDC, which took a significant majority stake in the business in January 2007.
CMG manufactures a broad range of high-quality, flexible conduit and fitting systems used to protect critical power and data systems from fire, dust, moisture and corrosion. With a strong reputation for quality, innovation and customer service, CMG operates through three of the industry’s leading brands; Adaptaflex, Kopex and Harnessflex, within key vertical markets including industrial OEM, construction and infrastructure, petrochemical and transportation.
Thomas & Betts is a global leader in the design and manufacture of essential components used to manage the connection, distribution, transmission and reliability of electrical power in industrial, construction and utility application. Headquartered in Memphis, Tennessee, Thomas & Betts has manufacturing and sales worldwide and reported revenues of US$1.9 billion in 2009.
CMG has achieved substantial organic sales and profit growth since 2007, with LDC working in partnership with a management team with extensive sector knowledge and operational expertise to implement a strategic plan focused on product innovation, operational improvement, as well as driving international expansion in the US, Europe, Australia and fast emerging economies in the Middle East, South America and Asia.
Operating from manufacturing sites in Coleshill and Newtown in the UK as well as having a considerable presence in the US, CMG employs around 200 people.
The original investment and ultimate exit from CMG was led by Martin Draper, Managing Director LDC Midlands and supported by Andy Lyndon, Investment Director. Martin Draper together with Darryl Eales, Chief Executive of LDC acted as LDC’s representatives on the board throughout the investment.
Commenting on the deal, Martin Draper Managing Director LDC Midlands said:
“In CMG we recognised the opportunity to partner with a high-quality management team and a business which had an internationally renowned reputation for high-quality and innovative products. Since our investment, CMG has consistently outperformed despite the challenging economic environment, consolidating its UK market position, leveraging its brands across new industry sectors and successfully expanding its presence in the US and other international territories.
“The sale to Thomas & Betts is an excellent outcome both for CMG’s employees and customers and we wish them all continued success in the future.”
Duncan McKinlay, Chief Executive of CMG commented:
“The support and strategic input that we have received from LDC over the last three years has been invaluable. We established a close working relationship with the Midlands’ team at the time of the MBO and the business has benefitted significantly from their help in delivering our strategic objectives.
“LDC’s Midlands’ team has extensive experience of working with businesses operating within specialist manufacturing and engineering. This has certainly helped us to deliver on and fully establish our new products within the market.”
Issued on behalf of LDC by Golley Slater
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