Cavendish

Cavendish advises on the sale of AEI Cables

Cavendish Corporate Finance is pleased to have advised TT electronics plc on the sale of the business and assets (excluding the freehold property) of AEI Cables to Paramount Cables for a consideration of over £13 million. AEI Cables has turnover of around £60 million and provides cabling solutions to a range of industries including construction, defence, transport, oil & gas and mining. It is one of the oldest brands in the cable industry having a distinguished history since 1837.

Paramount Cables is a cable manufacturer based in New Delhi in India and listed on the Bombay Stock Exchange. Paramount offers a comprehensive range of cables to a wide variety of industries and the acquisition will enable Paramount to expand faster into international markets such as Far East, the Middle East and Africa where the AEI brand is established.

Cavendish approached Paramount as part of a highly controlled, confidential sale process which resulted in several competing bids for the business. Paramount emerged as the preferred bidder due to the strategic value they saw in combining AEI's UK and export market position and product know-how with their own product portfolio and access to the Indian market.

Commenting on the disposal, TT electronics' Director Corporate Development, Jimmy Armstrong said:
''The disposal of AEI Cables is an important step in rationalising our non-core activities. The Cavendish team played a major role in achieving the successful closure of a complex transaction which delivers an exit for TT electronics that enhances shareholder value and, very importantly, the transfer of AEI Cables to a strategic buyer with a clear vision for the future development of the business.''

[Philip Barker], who heads up Cavendish's Industrials team, commented:
''When TT electronics mandated Cavendish to sell AEI Cables, we knew that a key factor was our proven ability to source strategic buyers from across the globe via our international network, M&A International. This was borne out by the process we ran which generated serious interest from strategic buyers in Africa, Europe, the Middle East and Far East together with the eventual buyer, Paramount.''

For further information contact:
[Philip Barker], Director
[Andrew Jeffs], Associate Director

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