Doughty Hansen Sells Moeller

Posted on Saturday, 22 December 2007. Filed under: Commentary, Mergers |

I can’t help but comment on this story that made news earlier this week (see FT Alphaville and the Financial Times), because of the company’s name and my surname being identical — and it’s not that common a name. 

(Full disclosure:  I am not aware of any family connections between me, my ancestors or the German company recently sold.)

What’s happened?  Doughty Hanson, the UK-based private equity group, sold its German-based electrical systems and components maker Möller Group for €1.6 billion to Eaton, the US-based industrial firm.  Doughty Hanson has only owned Moeller Group for two years, had bought it’s 75% stake in 2005 for €1.1 billion, of which only €192 million was equity.  They apparently earned a gross internal rate of return of 54% and trebled their investment. 

 Good deals are still to be had.

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