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PAI Partners acquires ADB from Montagu Private Equity

PAI Partners has acquired airfield lighting specialist ADB Solutions from Montagu Private Equity.

The terms of the transaction, which is subject to regulatory clearances, have not been disclosed.

ADB serves over 2,000 airports across more than 175 countries internationally. The company develops, manufactures, and sells a portfolio of AGL products and services for airports of all sizes, from large international hubs to smaller airports, military bases and heliports. ADB is headquartered in Brussels, with manufacturing presence in the US and China and a global network of sales offices and distributors.

Montagu acquired ADB from Siemens in 2009 and created an independent company, ADB Solutions. Since then profits have more than doubled and the company has expanded internationally, increasing its exposure to emerging markets including China, South America and the Middle East. The company generates approximately EUR160m of revenues, 45 per cent of which now come from emerging markets.

Laurent Rivoire, a partner at PAI Partners, says: “We are delighted to invest in ADB. It is the world leader in its sector, with strong growth prospects, and it is another investment in one of our core areas of expertise. We see excellent potential to expand the business footprint, particularly in emerging markets, where demand for airport infrastructure is rapidly increasing, and to benefit from the increased penetration of LED lamps, where ADB is market leader. We are also looking forward to working with ADB management and facilitating growth, both organically and through selective acquisitions.”

Sylvain Berger-Duquene, director at Montagu, says: “We are very proud to have partnered with ADB over the past four years. Under Montagu’s ownership, ADB has become an independent company following the successful carve-out from Siemens, opened a site in China, strengthened its product ranges, made a strategic technology-focused acquisition, and invested heavily in its R&D capabilities and people. ADB is now a truly global market leader, with an enhanced technological leadership and market coverage. This is a good illustration of our strategy to invest in high quality companies with potential to benefit significantly from partnering with Montagu. The success of the company is testament to its talented management team and we wish the whole company continued success in its new partnership with PAI.”

Christian Onselaere, chief executive of ADB, says: “ADB was born from a complex carve-out from Siemens in 2009, gathering product ranges, people and customer relationships from 5 different Siemens entities. We have turned it into a global, integrated leader with a proven capacity to innovate, satisfy its customers, and grow. Montagu has been a supportive partner in all aspects of this transformation and our business has proved resilient through the economic downturn. We look forward to working with PAI to deliver the next phase of ADB’s growth story.”

Rothschild acted as exclusive financial adviser to Montagu and ADB. BNP Paribas advised PAI.

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