BDC sells Shimtech to Inflexion and Auctus for $220m

Bridgepoint Development Capital achieved an IRR of 37% on its original investment

Bridgepoint Development Capital (BDC) has sold its investment in UK-based airplane parts manufacturer Shimtech to Inflexion and Auctus Industries for $220 million (£144 million, €201 million).

 

The UK buyout fund is understood to have obtained a 3x money multiple and an internal rate of return of 37 percent on its investment. Shimtech was created from the acquisition and consolidation in 2011 of four businesses from the UK's Hampson Industries for $84 million. The company later acquired Performance Plastics and Angeles Composite Technologies.

 

Shimtech manufactures aerospace shims and laminated shim material for commercial and military aircraft from its facilities in the UK, US and Europe. Terry Twigger, the co-founder of Auctus, established to target component suppliers in the aerospace industry with the aim of creating a consolidated global group, will be Simtech's new chairman.

 

KPMG, Pinsent Masons and Jones Day advised Inflexion and Auctus on the transaction. Ares Management arranged the debt facility.

 

Bridgepoint was advised by Catalyst Corporate Finance and legal advisers Reynolds Porter Chamberlain and Drinker Biddle & Reath.

 

The sale is BDC's fourth exit in the past year, including the sale of its stake in IT services infrastructure provider Pulsant to Oak Hill Capital Partners, and the UK's Hallmark Hotels to Topland. BDC invests equity of €10-70 million in buyouts in France, the Nordic countries and the UK with a value of up to €150 million.