3i has sold its 21.6% stake in baby care product manufacturer Cannon Avent Group to Charterhouse Capital Partners in a £300m secondary transaction. The Cannon automotive business is being retained by the Atkin family.
3i will receive proceeds of around £64m from the sale, representing a money multiple on its investment of 13 times and an IRR of 35%.
3i originally invested £5m of growth capital funding in Cannon Avent in 1995 in exchange for a minority stake. This investment enabled the company to take its next step and fulfil its long term strategy of reducing its debt and expanding the business overseas. Cavendish Corporate Finance advised the shareholders.