NVM secures successful exit with US deal for Stainton
STREET lighting and tramway manufacturer Stainton Metal Company has been sold by NVM Private Equity to US quoted group Valmont Industries.
The deal, for an undisclosed sum, has seen NVM receive an initial return of 2.6 times its orginal investment in 2001 when it bought the Teesside-based business from Canadian group Utility Structures.
NVM, represented on the deal by Jeff Holder and Clive Austin, said that its return could rise to 3.3 times the money it orginally invested and an IRR (internal rate of return) of more than 20%.
Stainton manufactures street lighting columns, high masts and tramway and telecommunication poles while New York Stock Exchange listed Valmont Industries makes lighting and traffic poles, utility structures and water management systems for agriculture.
Stainton is ranked number one in the UK lighting column market and has seen sales increase from £10.8m in 2002 to £15.9m in 2008 – representing a 47% growth during the life of NVM’s investment.
Jeff Holder, who manages NVM’s investments in Yorkshire and the North East, commented: “Stainton is a strong UK manufacturing company with a great management team who have worked hard to get the best out of the company. From NVM’s point of view we are delighted to demonstrate a fourth successful exit and ninth deal during 2008.”
Phil Plackett, managing director of Stainton added: “We have enjoyed working with NVM and are looking forward to the company’s next growth phase as part of Valmont Industries.”
Jonathan Jones of Hammonds and colleagues Jayne Aarons and Paul Mann advised NVM on the deal along with Matt Copley at BDO Stoy Hayward and Matt Gooch at William Blair & Company.
NVM is one of the UK’s leading independent private equity businesses focussed on making equity investments of between £2m and £10m in unquoted UK companies. NVM manages approximately £180m of funds.
