Montagu close to Survitech sale

THE Manchester office of buyout firm Montagu is hoping to complete a sale of defence equipment group Survitec in the next four weeks.

Another private equity firm, Permira, is in exclusive talks to buy the business which Montagu bought for £146m five years ago.

Sources clsoe to the deal said Survitec  would be fetch around £285m – slightly below Montagu’s initial expectations of £300m.  

Although headquarted in Northern Ireland, Survitec, which makes inflatable life-saving equipment for the defence, marine and aerospace sectors and tents for the Red Cross, has a manufacturing site in Birkenhead.

Rcently Montagu has driven international expansion at the company and turnover has risen from £93m to more than £150m in the last two years.

Survitec has around 1,000 staff at seven manufacturing sites and 13 distribution centres. It owns the RFD, Beaufort and DSB brands.

The sale will represent one of the largest private equity exits this year.