Montagu seeks £300m Caradon exit

MONTAGU Private Equity is to sell Ideal Boilers and Stelrad Radiators, marking the exit from the Cheshire-based Caradon Plumbing Group it bought for £496m in 2000.

Rival private equity houses and trade buyers are already lining up for the sale. It is expected to fetch at least £300m.

Both brands are market leaders and the return on the business could become one of Montagu's biggest success stories.

Caradon, the building materials group, originally included in its plumbing division Ideal, Stelrad and Mira Showers. Its bathrooms division produced the Twyford, Doulton and Royal Doulton brands.

The company employed 3,900 staff across ten sites when it was acquired and is still one of the largest suppliers of plumbing and heating products.

Montagu, then known as HSBC Private Equity, sold the bathrooms unit for £82m soon after the acquisition. The Mira Showers business was sold in 2001 for £301m.