CBPE Capital (“CBPE”) has acquired a majority ownership position in IDEAL Networks, a market leading Industrial Technology business which provides portable handsets for data cable and network testing, validation and certification. CBPE is acquiring the business from its former parent, IDEAL INDUSTRIES Inc and will be investing alongside the incumbent management team led by Paul Walsh, CEO. Terms of the transaction have not been disclosed.
IDEAL Networks’ products improve the productivity of qualified engineers who install, test and maintain network cabling and services. They work by simulating data flow to provide network diagnostics, enabling the engineers to certify newly installed network cabling or to resolve network issues across both Local Area Networks (LAN) and Wide Area Networks (WAN). IDEAL Networks is a global business, with sales across the EMEA, North America, Latin America and Asia.
Its comprehensive portfolio of products means that IDEAL Networks is well positioned to take advantage of a high growth market driven by ever-increasing demands for rapid and reliable network connectivity to facilitate global trends of faster transmission of data, voice and video signals.
CBPE will work with management to build on IDEAL Networks’ reputation for product innovation and will invest in research and development. The business will continue to offer market leading products developed to suit the needs of its end users.
CBPE has a strong track record of acquiring subsidiaries or divisions from larger parents and supporting these in becoming successful standalone businesses. Examples from CBPE’s current and realised portfolio include: SAFECHEM, which was acquired from The Dow Chemical Company; Xafinity, which was acquired from the Equiniti Group; and BWA, which was acquired from Chemtura. CBPE will leverage this experience to support the management team in establishing IDEAL Networks as an independent market leader and in pursuing ambitious international growth.
Mathew Hutchinson, Partner, CBPE said:
“IDEAL Networks has successfully established a reputation for quality and service in an attractive and growing market, and we are confident that the business will thrive under independent ownership. We will work with the management team and support their commitment to continue to offer innovative products and services which match the needs of the customer base.”
Paul Walsh, CEO of IDEAL Networks said:
“We are delighted to be working with CBPE and look forward to establishing IDEAL Networks as a successful, independent market leader. IDEAL INDUSTRIES has been a supportive owner and has enabled us to reach this stage of our development. With CBPE, we are confident we have found a partner that will provide valuable input as we pursue our exciting growth plans.”
CBPE’s investment in IDEAL Networks was led by Mathew Hutchinson with support from Ben Lewis, James Whittington and Aqil Sohail. Mathew Hutchinson and Ben Lewis will join the Board of IDEAL Networks.
Reed Smith acted as legal advisers to CBPE and PMSI provided the commercial due diligence advice. William Blair acted as financial adviser to IDEAL INDUSTRIES Inc.