Dynacast up for sale at £400m

PRIVATE equity group Cinven is planning to sell Dynacast, an engineering firm that was once the most profitable part of textiles group Coats Viyella.

It has appointed American-listed private equity adviser Robert W Baird to arrange the sale of the company, which could be worth more than £400m.

Dynacast, which has a base in Warwickshire, operates throughout Europe and America. It produces metal components used in everything from cars to consumer electronics.

Founded in 1969 in America as a zip manufacturer, it grew to become a major manufacturing business and the most valuable part of Coats. Its range of products included the handles for Gillette Mach 3 razor blades.

Coats, a major supplier to Marks & Spencer and one-time owner of Jaeger Knitwear, was forced to review its ownership of the business when it was hit by a sales slump and mounting competition from exports.

It sold Dynacast to Cinven in 1999 to reduce debts and to concentrate on clothing.

A sales process is expected to start shortly. There could be significant interest from both trade and private equity buyers.