3i, an international leader in private equity, has agreed to divest its 48% stake in core materials manufacturer DIAB Group AB to private equity company Ratos, which currently holds a 48% interest in the company, and to DIAB’s management. The transaction will generate around SEK 400 million in proceeds for 3i.

Laholm, Sweden-based DIAB makes composite core materials for a wide range of applications in the marine, wind energy, transport and aerospace industries. Employing over 1200 staff, its facilities are spread across four continents. DIAB has grown significantly over the years and generated approximately SEK 1.35 billion in revenues in 2007.

3i Director Christer Nilsson commented on the transaction: “We have been invested in DIAB for many years and have successfully worked in partnership with management to substantially strengthen its business operations and develop DIAB into a global market leader.  We are pleased with our return on this investment and believe DIAB is on track to further success under the guidance of Ratos.”

3i is a successful investor in the general industrials sector. Recent divestments include Transports Alloin, ABX Logistics and Damcos. Current investments include AES Engineering, Scandlines and Norma Group.

The transaction remains subject to the approval of the anti-trust authorities.