Furmanite

Activity
Leak sealing
Acquired
Oct 1986
Realised
May 1991
Sector
Industrials

Business
Furmanite was a world leader in high pressure leak sealing and related services. Its major customers were large companies in sectors such as power generation, petrochemicals, steel and papermaking. It was the only company to offer such a wide range of sealing products and services. In 1984 its then parent company was acquired by Barlow Rand, which decided to dispose of the Furmanite business and in October 1986 Cinven financed its management buyout.

Strategy
Furmanite occupied a strong position in its market and generated good cash flows and stable earnings. Demand for the company’s services was expected to grow as the ability to undertake repairs without shutting down plants became more widely understood.

Outcome
The company performed strongly as anticipated and in May 1991 Furmanite was sold to an American trade buyer.

Return on original investment: 3.5x