FCI Group, a portfolio company of Bain Capital, has agreed to sell its electrical division (Burndy) to Hubbell Inc. No financial terms were disclosed for the deal, which is expected to close by year-end.
FCI group is pleased to announce that it has entered into an agreement to sell its Electrical division* known by the brand name BURNDY® to Hubbell Incorporated. FCI- BURNDY® represented circa 12% of FCI group’s total sales revenue in 2008. As a result of the excellent performance of its Electrical division, FCI had received many unsolicited offers over the years for its acquisition. Some of the recent offers were particularly attractive and deserved closer attention. Therefore, FCI top management decided to carefully study these proposals, which ended in the decision to divest the Division.
Pierre Vareille, Chairman and CEO of FCI group, comments – ‘The Electrical Division had the least synergies with the other divisions of FCI in terms of products and customers and we think that the combination with Hubbell will enhance the value creation opportunities for the BURNDY® brand. Moreover, thanks to this divestiture, FCI’s financial situation is more sound and stable than ever. This divestiture opens for FCI a wealth of opportunities for new developments, be it vis-à-vis our customers, our partners or other companies that may join our group.’
The deal remains subject to approval of competent authorities and shall be finalized during Q4 2009.