25 years of uninterrupted growth
Founded in 1979, AES manufactures mechanical seals used by clients in a diverse range of industries - from oil and gas to food and drink. The devices eliminate leakage where rotating shafts enter equipment such as pumps and compressors and are vital for safe, efficient production and the management of environmental risk. The company has delivered 25 years of uninterrupted growth in turnover and profitability and has expanded globally with sites in more than 30 countries and a turnover in excess of €100m.

Rising to the challenge
In 1996, founder and CEO, Chris Rea was looking for an external partner to help him achieve his vision. 3i acquired a 25% holding, providing funds to support Rea's expansion plans, and introduced Hamdi Conger as Non-executive Director. Hamdi has run a number of industrial businesses and is a key member of 3i's People Programmes and his industrial connections played an important part in accelerating AES's global growth. By 2007 Chris Rea felt that AES was ready to take another step forward in its development and he challenged 3i to show how they could add further value. As a result, 3i made a further investment that took its holding to 40%, valuing the business at €140m.

"Our ultimate objective is to become the world's number one seal manufacturer and we want to work with people who can help us achieve that. 3i has been a fantastic partner since 1996 and I challenged them to show that they could add even more value to AES. I'm delighted to say that they responded with some great ideas for our future." Chris Rea, founder and CEO, AES Engineering.

Delivering the 3i network
3i's further investment in October 2007 coincided with a number of board-level changes that reflected AES's substantial growth. Hamdi Conger became Chairman and the company acquired a new Finance Director, the hugely experienced Neil MacDonald. 3i Partner, Richard Bishop, joined the Board, stating:
"My role is to deliver 3i's sector expertise and geographic network to AES in ways that have intense practical value. Across the world 3i has strong relationships in many sectors that AES deals with and we can use our relationships to help AES access new customers and fresh thinking. A good example is the energy conservation sector. AES is already the market leader for supplying seals to biofuel plants in the US and our close connections with the cleantech sector will help establish this strong position worldwide."

"In addition we have a number of companies in our global portfolio that can help AES to maintain its rapid growth trajectory. Several companies in which we've invested are potential customers for AES's products, while others work in complementary areas that open up valuable opportunities for joint business development."

An exciting future
3i will also work with AES to make other changes that complete the company's evolution into a major international player: working with a management structure that meets the needs of a global client base; reviewing marketing and pricing strategies to fully reflect the unique nature and value of the company's innovative products; and evaluating potential acquisitions that will further strengthen a world-leading product set.