European Capital Sells Avery Weigh-Tronix

Illinois Tool Works Inc (ITW) has acquired Avery Weigh-Tronix, a manufacturer of industrial weighing products and systems for an undisclosed sum from private equity firm European Capital.

European Capital had already realised some of the value from its 2006 combined debt and equity investment in Avery through the sale of the company’s retail weighing business. The financial investor paid €123m for the whole of Avery in July 2006.

ITW’s acquisition of this UK-based manufacturer, which also has operations in the US, Ireland, France, Austria, India, Malaysia and China follows, follows its attempt to seal a much larger UK acquisition earlier this year.

In July, ITW abandoned its play for UK kitchen equipment maker Enodis. The company was secured by US rival Manitowoc in a £1.3bn deal.

The exit from Avery generated an IRR of 53% for European Capital, a subsidiary of American Capital.

Source: Thomson Merger News