3i to sell Mayborn at 3.5x money multiple

3i Group, the London private equity firm, and funds it manages agreed to sell Mayborn Group to Shanghai Jahwa (Group) Co. In a statement, 3i said that total proceeds to 3i and funds “represent a 3.5x money multiple. Proceeds … will be £135m, in line with 3i’s valuation at 31 December 2015. These amounts are in addition to £32m received by 3i through a refinancing in 2012.” 3i took Mayborn private in 2006. In that time, Ebitda tripled, reaching more than £25 million ($36.4 million) in 2015. Net sales in 2015 were £130 million, 60 percent of which were international sales.  Shanghai Jahwa is the parent of the Chinese consumer-products firm Jahwa United Co. Jahwa Group is wholly owned by Ping An Insurance Group.

Press release

28 APRIL 2016

3i makes 3.5x return on sale of Mayborn Group

3i Group plc (“3i”), and funds managed by 3i, today announce the sale of Mayborn Group (“Mayborn”) to Shanghai Jahwa (Group) Co., Ltd (“Jahwa Group”), the parent company of leading Chinese consumer products organisation, Jahwa United Co. Ltd. Jahwa Group is wholly owned by the Ping An Insurance Group (“Ping An”).

Since 3i invested in the business in 2006 in a take private transaction, Mayborn has expanded through international growth, new product launches and acquisitions, with EBITDA tripling to over £25m in 2015 and net sales reaching £130m. International sales now represent almost 60% of group revenue.

Total proceeds to 3i and funds represent a 3.5x money multiple. Proceeds to 3i from today’s transaction will be £135m, in line with 3i’s valuation at 31 December 2015. These amounts are in addition to £32m received by 3i through a refinancing in 2012.

Mayborn Group’s Tommee Tippee® is the number one feeding brand in the UK and Australia, the fastest growing bottle brand in America and one of the top 5 baby brands in the world. Its feeding, hygiene and soothing products are sold in more than 70 countries. Under 3i’s ownership, Mayborn has experienced rapid growth through international expansion, including the highly successful launch of Tommee Tippee in the US in 2010, growing sales to almost $40m in 2015. Other key strategic developments include setting up a direct company owned operation in Australia in 2012, as well as the acquisition of Tommee Tippee’s French distributor in 2013.

In addition, through its Business Leaders Network, 3i introduced Paul Mason as Chairman of Mayborn. He is currently also Chairman of Cath Kidston and Dr Martens and was formerly CEO of Asda-Walmart and Somerfield.

Alan Giddins, Managing Partner and co-head of Private Equity commented:

“Since the take private of Mayborn, the transformation of the company from being largely UK focused into a market leading global business has been significant. I would like to thank Steve Parkin and his management team for their huge commitment in delivering on this plan, and I wish them well through the next phase of Mayborn’s growth.”

Steve Parkin, CEO of Mayborn, said:

“Mayborn has undertaken a transformational journey over the past 10 years, and I would like to thank 3i for its partnership. 3i’s international mindset has been an important factor in our successful expansion into new markets and I am looking forward to working with Jahwa Group for the next stage in our development.”

The transaction is subject to customary regulatory approvals.