Livingstone has advised Hallmark Industries, a portfolio company of trans-Atlantic private equity firm MML Capital Partners, on the sale of Cableform Inc. This is the third divestment that Livingstone has completed for Hallmark and MML, having advised on the sales of subsidiaries ZEAG and Zodion in 2011.
Established in 1974, Richmond, Virginia-based Cableform has pioneered the design and manufacture of large DC motor controls for cranes, hoists, traction and magnet control applications, principally to the mining and steel industries. Its products improve the efficiency, reliability and safety of customers’ operations in what are often high risk environments.
The company has been acquired by Hubbell Inc, the international manufacturer of electrical and electronic products for a broad range of construction, industrial and utility applications. Cableform will fit into Hubbell’s Industrial Controls division, and will widen Hubbell’s existing product offering to the mining and heavy industry sectors.
Brian Kent, Executive Chairman, Hallmark Industries commented: “Cableform is an attractive niche business with a good market position and a strong technology platform. The management team, led by Andrew Thexton, has done a fantastic job and the business has performed consistently well over the last few years in what has been a difficult economic climate. In Hubbell I believe we have found the ideal home for the business, and I am sure it will continue to thrive under their stewardship.”
Ian Wallis, Managing Partner, MML Capital said: “We are delighted to have completed the final disposal from the Hallmark Group, all three within the last twelve months. This deal was completed at an attractive price, and the overall multiple paid on the three assets was in excess of seven times EBITDA. We would like to thank Livingstone for their advice and support through the entire Hallmark disposal process.”
James Lever, Partner at Livingstone London, stated: “We have hugely enjoyed working with Hallmark and MML in their disposal programme. To have completed these three transactions in a twelve month period, two of them cross-border, is quite an achievement but shows the appetite that exists for quality UK assets. Through our international offices we were able to identify and transact with the most relevant international purchasers and generate a great result for our client.”
Alex John, Director at Livingstone London, added: “Cableform has developed a fantastic product range that enables customers to work more safely and efficiently, increasing throughput and decreasing downtime. This is a great selling message to have in the current economic climate. It has enabled the business to perform extremely well and made it an attractive proposition for a number of potential acquirers.”