Hanson focus sharpens with pounds 145m sale

Hanson took another step in its strategy of focusing on its core building materials operations yesterday, selling its electrical division to a CINVen-backed management buyout for pounds 145m.

The deal, one of the first since Hanson demerged its chemicals, energy and tobacco operations in a four-way break-up last year, follows a pounds 78m American acquisition last month which made Hanson one the US's largest concrete pipe producers.

Following the buyout, Hanson Electrical will rename itself Electrium. The business, which contributed about 6 per cent of Hanson's operating profits last year is one of the leading suppliers of electrical wiring accessories and circuit protection products both for new build residential and commercial buildings and for use in repairs and maintenance.

Hugh Langmuir, a director of CINVen, said: "Electrium is a high-quality business which has considerable growth opportunities available to it given the strength of its brands and reputation for excellence. We are delighted to be providing the funds for the acquisition."

Electrium's products include switches and sockets, sold under the Crabtree, Volex and Marbo brands, miniature circuit-breakers and household electrical cords. It employs 3,000 people in six UK manufacturing operations and plants in France, Dubai and Malaysia.

Cinven, itself a management buyout from the British Coal Pension Fund in October 1995, will be the majority shareholder in Electrium, which was built up by Hanson as a result of a string of acquisitions over the past 15 years. The original wiring business came with the acquisition in 1982 of British Ever Ready. Volex was added in 1991, followed by Scholes, which joined the group in 1994 in an agreed bid.

CINVen manages around pounds 1bn on behalf of three clients, British Coal Pension Funds, Railway Pension Schemes and Barclays Bank Pension Funds. It recently completed its first independent fund raising of pounds 300m, which forms a private equity fund dedicated to investments in the UK and Europe.

Pre-tax profits last year at Electrium were pounds 13.4m struck from sales of pounds 144.7m. Just over two-thirds of turnover is in the UK with the balance going to France, the Middle East and Asia. At home, the it is a big supplier to electrical wholesaling groups.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Tax Manager / Accountant

£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

Ashdown Group: Contracts Executive - City of London

£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...

Recruitment Genius: Call Centre Debt Collector - Multiple Roles

£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...

Day In a Page

Giants Club: After wholesale butchery of Idi Amin's regime, Uganda’s giants flourish once again

Uganda's giants are flourishing once again

After the wholesale butchery of Idi Amin's regime, elephant populations are finally recovering
The London: After 350 years, the riddle of Britain's exploding fleet is finally solved

After 350 years, the riddle of Britain's exploding fleet is finally solved

Archaeologists will recover a crucial item from the wreck of the London which could help shed more light on what happened in the vessel's final seconds
Airbus has patented a jet that could fly from London to New York in one hour

Airbus has patented a jet that could fly from London to New York in one hour

The invention involves turbojets and ramjets - a type of jet engine - and a rocket motor
10 best sun creams for kids

10 best sun creams for kids

Protect delicate and sensitive skin with products specially formulated for little ones
Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

US betrayal of old ally brings limited reward

Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
VIPs gather for opening of second Suez Canal - but doubts linger over security

'A gift from Egypt to the rest of the world'

VIPs gather for opening of second Suez Canal - but is it really needed?
Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
The male menopause and intimations of mortality

Aches, pains and an inkling of mortality

So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

'How can I possibly be on the list with these writers I have idolised?'

Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

Bettany Hughes interview

The historian on how Socrates would have solved Greece's problems
Art of the state: Pyongyang propaganda posters to be exhibited in China

Art of the state

Pyongyang propaganda posters to be exhibited in China
Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

Vegetarian food gets a makeover

Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

The haunting of Shirley Jackson

Was the gothic author's life really as bleak as her fiction?
Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

Bill Granger's seaside-inspired recipes

These dishes are so easy to make, our chef is almost embarrassed to call them recipes
Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

Tourists are limp, leaderless and distinctly UnAustralian

A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin