Marconi Applied Technologies in GBP72 million MBO

Investee Company – Marconi Applied Technologies (UK)

Investee Company Business Type – Designs and manufactures RF, microwave, switching, sensing and imaging components and subsystems

Type of Financing – MBO

Equity Providers – 3i Group

Equity Leader (Individual) – Steven Nicholls and Paul Cannings

Debt Providers – Bank of Scotland Corporate Banking

Debt Type – N/A

Debt Leader (Individual) – Donald Gateley, Alastair Hepburn, and John Flannelly

Equity Amount – NK

Total Deal Value – £72 million

Other Advisors – N/A

Comments – 3i Group has announced its participation in the £72 million management buyout of Marconi Applied Technologies, a designer and manufacturer of innovative electro-optical, microwave devices and RF power products.

The purchase price proceeds of £57 million to Marconi comprise £50 million in cash and £7 million in a vendor loan bond. Bank of Scotland Corporate Banking arranged and provided the debt funding.

Founded in 1947, Marconi Applied Technologies is based in Chelmsford (UK), with another site in Lincoln (UK) and has sales offices in Paris, Munich, and New York. The company provides high specification products for broadcast, automotive, medical, scientific imaging, industrial process, defence and space applications.

Paul Cannings, director at 3i, commented: “This was a complex deal where we used both our sector knowledge and partnership candidates to identify the value of the business. There are a number of world class activities within Marconi Applied Technologies which we will develop with further investment in order to maximise their potential.”

Keith Attwood, chief executive of Marconi Applied Technologies, said: “We chose to work with 3i because of the time they spent understanding our business and identifying ways to unlock value. This exciting coalition will allow us to invest in new opportunities to develop a strong, independent, global, technology group. This deal is great news for everyone associated with this business.”

Marconi Applied Technologies will be re-branded as E2V Technologies.