CMG sold in £70m exit for LDC
Birmingham’s Cable Management Group (CMG) has been sold by private equity house LDC to US business Thomas & Betts Corporation in a $110m (around £70m) deal.
CMG is the UK market leader in the design, manufacture and supply of flexible conduit systems used in the protection of critical power and data cables. It operates through three of the industry’s leading brands; Adaptaflex, Kopex and Harnessflex.
Thomas & Betts is a global leader in the design and manufacture of essential components used to manage the connection, distribution, transmission and reliability of electrical power in industrial, construction and utility applications. Headquartered in Memphis, Tennessee, it reported revenues of $1.9bn in 2009.
LDC took a significant majority stake in CMG in January 2007 and today’s exit is said to represent an “excellent return” for the firm. CMG has achieved substantial sales and profit growth since then, with LDC working in partnership with a management team with extensive sector knowledge and operational expertise to implement a strategic plan which included driving international expansion in the US, Europe, Australia and fast emerging economies in the Middle East, South America and Asia.
Operating from manufacturing sites in Coleshill and Newtown in the UK as well as having a considerable presence in the US, CMG employs around 200 people.
The original investment and ultimate exit from CMG was led by Martin Draper, managing director of LDC in Midlands, who was recently crowned Midlands Business Insider’s Dealmaker of the Year.
Draper said: “Since our investment, CMG has consistently outperformed despite the challenging economic environment, consolidating its UK market position, leveraging its brands across new industry sectors and successfully expanding its presence in the US and other international territories.
“The sale to Thomas & Betts is an excellent outcome both for CMG’s employees and customers.”
LDC’s exit from CMG is the second sale completed by the Midlands’ team in recent weeks. Last month, LDC sold its equity stake in Vision Security Group in a £64m deal with FTSE 100 listed Compass Group.
