In April 1994 Cinven’s investors bought a 30% share in Semitron, an early stage technology business. The company designed, produced and marketed power protection devices for the electronics and telecommunications markets. Its new, proprietary technologies enabled its customers to protect their equipment from potentially damaging fluctuation in power supply more safely and efficiently than existing technologies.
The business needed to recapitalise and degear. The new funding was used to buy out those investors that had provided it with seed capital, at the same time as injecting additional funding to purchase two new production lines. These would enable the company to meet demand from key customers among major telecommunications companies in Europe, Asia and Latin America.
Semitron traded well and in 1997 was sold to a US based private company.
Multiple returned on investment: 3x