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Doughty Hanson sells Moeller Group to Eaton Corporation for €1.55bn20/12/2007. Source: AltAssets. 
 Doughty Hanson & Co has sold Bonn, Germany-based manufacturer Moeller Group to Eaton Corporation for €1.55bn. The return on Doughty Hanson's equity investment in Moeller is three times and represents a gross IRR of 54 per cent.
Moeller is a manufacturer of systems and components for power distribution and automation in industrial, infrastructure and residential building applications. The company employs approximately 8,800 people.
Doughty Hanson acquired a majority stake in Moeller from Advent International in September 2005 for €1.1bn, including pension liabilities and financial debt. The acquisition was financed through equity investment of €192m and €650m of debt.
Claus Felder, managing partner of Doughty Hanson & Co in Germany, said, 'The management team and the employees of Moeller have done an outstanding job and led the group on a stable growth path. The management has found the right balance of increasing efficiency, advancing technological innovation and driving international expansion. Now is the right time for Moeller to enter the next phase of growth by becoming a part of a major global industrial group with a compelling strategic and geographic fit.'
Alexander M Cutler, Eaton chairman and CEO, added, 'Today's actions clearly underscore Eaton's success in expanding our Electrical business globally. The Moeller Group's broad portfolio of power distribution and control products that meet International Electrotechnical Commission (IEC) standards, along with its strong distribution network in both Western and Eastern Europe and its large-scale production facilities in several Eastern European countries, will significantly expand our competitiveness in electrical markets outside the United States.'
The sale of Moeller is Doughty Hanson's second realisation from Doughty Hanson & Co. Fund IV, which closed in January 2005 with commitments of €1.5bn. Earlier this year, the firm closed its latest private equity fund, Doughty Hanson V, on €3bn.
Doughty Hanson has offices in London, Frankfurt, Luxembourg, Madrid, Milan, Munich, Paris and Stockholm.
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