Live Deals: U.S. Deal No. 3 for Doughty Hanson –

Notching a third U.S. deal through its New York arm, U.K. buyout firm Doughty Hanson & Co. this month acquired Trend Technologies, a manufacturer of enclosures for electronics, for $317.5 million.

Jackie Reses, a partner at the firm, declined to provide terms of the transaction, but noted that debt financing was provided by Deutsche Bank.

Doughty Hanson became interested in San Jose, Calif.-based Trend Technologies because its growth prospects are “incredibly attractive,” Reses said. “This company combines the rapid growth of technology with the stability of cash flow associated with manufacturing.”

The company is in the early stages of being the head consolidator in a highly fragmented industry, she said. The electronic enclosures industry, which grew by 40% last year, has approximately 800 players – practically all privately owned – with only a few boasting sales of more than $100 million, she added.

Doughty Hanson plans to build the company through acquisitions in the U.S., Asia and Europe, Reses said. Trend Technologies currently generates approximately $310 million in sales and Doughty Hanson intends to take the company to $1 billion in the next year or two, she said.

Trend Technologies was formed in 1997 with the aggregation of three entities that make both plastic and metal products. Trend Technologies provides its customers with injection molding, metal stamping, mechanical assembly, tooling maintenance and logistics management.

Trend Technologies has partnerships with original equipment manufacturers and contract manufacturers in the computer, networking, telecommunications and consumer products industries. Its customer base includes Dell Computer Corp., Cisco Systems Inc., Compaq Computer Corp. and Sun Microsystems.

Reses said Trend Technologies’ first acquisition will close in a few months.

Since opening its New York offices in early 1999 (BUYOUTS Dec. 21, 1998, p. 1) Doughty Hanson has made two other U.S. acquisitions – the $520 million buyout of Knowles Electronics Inc. and the $150 million acquisition of Cendant Corp. orphan North American Outdoor Group.