AES Engineering and 3i: a partnership for international growth
Since it was founded in 1979, AES has become one of the world’s leading names in mechanical seals. The devices eliminate leakage and feature in any manufacturing process that involves the transfer of liquids, gases or powders.
The growth of AES has been powered by a twin focus on customer service and technical excellence. This has delivered over 25 years of uninterrupted growth in turnover and profitability. At the same time AES has expanded from its UK base to achieve an international presence, with sites in 30 countries and customers in more than twice that number.
The outstanding performance of AES reflects the vision and leadership of its founder and CEO, Chris Rea. In 1996 Chris decided that AES’s evolution would benefit from an external partner: 3i acquired a 25% holding in the business, providing funds to support the company’s continued expansion.
By 2007, Chris Rea decided that AES was ready to take the next steps in its development. In his words: “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.” As a result, 3i made a further investment that took its holding to 40%, valuing the overall business at £100m.
3i’s further investment in October 2007 coincided with a number of board-level changes. Hamdi Conger, introduced to the business by 3i some years ago, became chairman and Richard Bishop of 3i joined the board. In Richard’s view: “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 sells into and we can use our relationships to help AES access new customers and fresh thinking.”
3i will also help AES make other changes that complete the company’s evolution into a major international player: implementing marketing and pricing strategies that fully reflect the unique nature and value of the company’s innovative products; evaluating potential acquisitions that will further strengthen a world-leading product set; and looking to fund strategic acquisitions where appropriate.