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PRINT THIS PAGE 3i exits Encon investment in £140.5m deal24/10/2005. Source: AltAssets. 
 3i has sold Encon, a UK specialist distributor of insulation products, to Wolseley in a £140.5m deal. The sale will complete 3i's exit from the Encon group, which it acquired alongside its management team in late 1997. 3i's proceeds represent a money multiple of 5.8 x its original investment and an IRR of 30 per cent, 3i said in a statement.
The sale of the Encon distribution business represents a complete exit from the group for 3i. During the life of the eight-year investment, 3i has taken an active role in the strategic direction of the business including appointing Jim Cooper as chairman of the board and 3i director Ken Beaty as a non-executive director on the board.
Wetherby, West Yorkshire-based Encon supplies insulation, dry wall and related products to the construction industry. Currently the business operates from 22 depots in 18 locations.
Beaty said, 'Since we led the MBO of Encon in the late 1990s, the business has delivered consistent year-on-year growth. Increasing government legislation surrounding energy insulation has led to strong market demand in recent years and this is set to continue.
'This transaction allows 3i to realise the value created during the life of our investment, whilst allowing Encon to become part of an international organisation with extensive synergy opportunities. We are delighted with the fantastic return we have made on this investment,' Beaty continued.
Last week 3i announced it had sold its minority stake in fashion retailer Republic as part of a £105m deal to Change Capital.
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