CVC to exit Trench Electric Holdings

CVC Capital Partners has agreed to sell Trench Electric Holdings, a high-voltage component manufacturer, to Siemens for €285m on a debt-free, cash-free basis.

The transaction is expected to complete in the second half of 2004, subject to regulatory approval. On completion it is intended that either Trench or Siemens will redeem Trench’s outstanding 10.25% senior subordinated notes, worth €125m, due in 2007.

BBA, the aviation and materials technology group, sold the UK-headquartered Trench to CVC in a management buyout in September 1997 for €244m.

CVC exited Trench from its €698m CVC European Equity Partners fund. In 2003, Trench reported sales of €232m and an operating profit of €35m.