3i lines up Mayborn deal
Article Date: May 25 2006
Private equity giant 3i is on the cusp of the £116 million purchase of London-listed Mayborn, having agreed an offer of £5 a share with the board of the manufacturer of baby and household products. If the bid is successful, 3i will install former Burger King president Nish Kankiwala as chief executive.
Mayborn, which generated a £10.1 million profit from £87.2 million of revenue in 2005, operates two principal brands. Tommee Tippee is a specialist producer of baby and childcare products, selling everything from soothers to sterilisers. Dylon, meanwhile, is a leading manufacturer of fabric dyes and household cleaning products.
On completion, 3i plans to focus on growing revenues and distribution channels. It also intends to de-merge Tube Plastics, the children’s outdoor play equipment producer that was only acquired in 2005 but which has been subsequently hindered by the collapse of a key Chinese supplier.
Explaining the reasoning behind the proposed acquisition – which is now in the hands of Mayborn’s shareholders – 3i’s Jennifer Dunstan notes ‘We identified Mayborn as a strong business with exceptional growth potential and we are delighted that Nish has agreed to join what is already a highly experienced management team.’
*Image courtesy of Vismedia
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