Region: UK
Sector: Industrial

Nature of Business

AESSEAL is a major specialist in the design and manufacture of mechanical seals and support systems. Mechanical seals are used in pumps and rotating equipment to prevent liquids and gases from escaping into the environment. The company’s customer base are the oil and gas, paper, water, mining, pharmaceutical and petrochemical sectors worldwide. AESSEAL operates from 230 locations in over 30 countries and is now the 4th largest mechanical seal company in the world with exports to 104 countries.

Investment Overview

We invested in AESSEAL for a 25% stake in 1996, when we introduced a new Non-Executive Director, Hamdi Conger, who is highly experienced at growing international industrial businesses.

After a successful period in which AESSEAL consistently delivered its ambitious growth forecasts, we were asked by CEO, Chris Rea, to back AESSEAL’s next phase of growth to enable the business to become an international leader. We recognised the global potential of the business and increased our stake to 40% in October 2007, allowing Chris to retain a majority interest and control of the business. At this time Hamdi Conger became Chairman of AESSEAL.

We worked closely with the AESSEAL Board to implement value-based pricing and strengthen the management team.

EBITDA has grown at a CAGR of c.14% since our 2007 investment, thus out-performing its competition. The company continues to invest for future growth and 2012 saw the highest level of job creation in the firm's history, as well as a $5m investment in production capacity in the US.

AESSEAL has won various industry awards including twelve Queen’s Awards for Enterprise.

Regulatory notice: This transaction involved a recommendation of 3i Investments plc

3i office contact

16 Palace St
London SW1E 5JD
Tel: +44 (0)20 7975 3131
Fax: +44 (0) 20 7975 3232

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