3i to Off-Load Two More German Assets

In a continuing bid to reduce a very heavy debt load, UK private equity firm 3i has put two of its largest German assets on the block. Norma Group, a manufacturer of metal and plastic connectors, will undergo an Initial Public Offering in 2011 which could produce up to €700 million for 3i. Engine maker MWM, on the other hand, will be auctioned off later this year for an amount 3i hopes will be in the €500 million range.

3i embarked on an ambitious plan to off-load debt in the spring of 2009, setting an initial goal of €1.2 billion. As of March 2010, 3i’s goals were exceeded to the tune of €2.05 billion. The success spurred the firm to make a few more deals earlier this year, raising their debt level slightly. 3i paid €360 million for MWM in 2007, and about €200 million for Norma Group in 2005.