City & Corporate: GA nets Foseco listing job as Cinven cuts stake

Steel foundry equipment maker Foseco has hired Gavin Anderson to handle financial comms as it prepares for flotation on the London Stock Exchange.

GA is fronting the firm's institutional placing, which will see venture capital owner Cinven sell a large chunk of its stake in the company.

At present Cinven owns around 90 per cent of Foseco after backing a management buyout of the group from Burmah Castrol in September 2001.

After the deal, which should take place before the end of next month, Cinven will own between 20 and 30 per cent of Foseco with management retaining at least five per cent of its current ten per cent.

The full flotation on the LSE will give Foseco a market capitalisation of about £170m, but the listing is not intended to raise any new money.

Cinven and Foseco's management are hoping instead to cash in part of their stakes in the company and put in place a share incentive programme for staff. Collins Stewart is broker to the deal.

Foseco expects global casting, for which the company makes filters, feeders and chemical binding agents, to increase by up to two per cent per annum.

Foseco had sales of nearly £340m in the year to 31 December 2004.

GA director Robert Speed and MD Deborah Walter are leading the account and report to Foseco CEO Jamie Pike.

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