Liberty Corporate Finance is pleased to announce the completion of the Management Buyout of Kelvin Hughes Limited from its parent Smiths Group plc in a £52m transaction backed by ECI Partners.

Kelvin Hughes is a leading supplier of navigation products and services for the Naval and Commercial marine sectors.  Its products include radar sensors and display technology, Voyage Data Recorders, Electronic Chart systems and highly advanced Integrated Bridge Systems. In addition, through ChartCo, it provides a unique and highly cost effective means of providing bulk data to ships via satellite. Kelvin Hughes is also the world’s largest supplier of nautical charts and publications for commercial and leisure use. Kelvin Hughes products are used in a wide range of commercial vessels, luxury yachts and cruise liners, including the new Queen Mary 2. They are also in service with over 30 navies around the world, including all United Kingdom Royal Navy warships. Following the transaction, Kelvin Hughes will increase its investment in technological innovations and constant product development to further strengthen its position at the forefront of naval and commercial navigation technology.  Kelvin Hughes operates in a growing market, driven by the increasing legislative requirements on mandatory safety, situational awareness and navigational equipment.

Liberty was appointed by Smiths Group plc to advise the Kelvin Hughes management team on the transaction.


ECI backed the existing management team led by Russell Gould, MD and the growth of the business will be driven through both organic expansion and acquisitions.   Simon Hill from Liberty commented; “Kelvin Hughes is an excellent business standing at the forefront of technological innovation and operating with a truly global reach.  This transaction enables the management team to continue to take the business forward as an independent leader in its field, with the experience and resources of ECI Partners at their disposal to drive both organic and acquisitive growth.” Russell Gould, Managing Director of Kelvin Hughes, comments; “This is an exciting time for everyone at Kelvin Hughes. With ECI’s support we are extremely well placed to build on our current position as a world leading producer of navigation technology.  The sector we operate in is growing due to the increasingly legislative environment affecting the marine industry, and we feel that we are ready and equipped to capture the market opportunity.”

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Verdant

1 November 2007