HSBC Private Equity today announced that Cintex Group Limited has been sold to HSBC Private Equity in a secondary buyout from Kleinwort Benson Development Capital. HSBC Private Equity structured, led and arranged the £38.4 million transaction and Bank of Scotland structured, led and arranged the senior debt and working capital facilities. 

Cintex is one of the world's leading designers and manufacturers of end-of-line inspection systems for the food, textile and pharmaceutical industries. In 1996, Kleinwort Benson Development Capital and 3i backed John Gray, Chief Executive, and Bob Shepherd, Finance Director, in a £15.3 million management buyin to the business headquartered near Heathrow Airport, with additional manufacturing facilities in Northamptonshire, England and Wisconsin, USA.

Following the MBI, the company has implemented an innovative sales and marketing organisation that has substantially extended its geographic reach to 34 countries and formed a new product development team to increase its product portfolio. As an integrated end-of-line inspection systems business, Cintex's five profit centres now include metal detectors, checkweighers, Needlesearch, x-ray and after sales services. Cintex's sales and profits have doubled since 1996 and in the year to December 1998 it made an operating profit of £3 million on sales of £13.6 million.

John Gray, Chief Executive of Cintex, who led the original MBI said: "This deal represents a great opportunity for both Cintex and the management team that has been responsible for the impressive performance of the Group over the last three years. A substantial number of these managers have demonstrated their commitment to Cintex by taking this opportunity to invest in the business. This along with other external investments, will be used to develop our customer service, product innovation and global support activities."

Andy Thesen, Director of HSBC Private Equity, who will become a non-executive director of Cintex Holdings, commented: "Cintex is a very well run business with a strong position in its niche. We look forward to continued strong growth in sales on the back of further development of existing products and new product launches."