Bridgepoint has sold Permaswage, which supplies products for aircraft manufacturers, to New York-listed Precision Castparts for $600 million.
The deal, which is subject to standard clearances and expected to complete in the third quarter of this year, has generated a 2.5x return, according to a source close to the matter. Bridgepoint declined to comment beyond the statement.
Bridgepoint invested in Permaswage in 2007, using its Bridgepoint Europe III vehicle, a €2.5 billion, 2005 vintage.
Permaswage is a manufacturer and supplier of separable couplings used to connect hydraulic, air and other tubing in all types of civil and military aircrafts. The company’s connectors operate in aircraft systems and fly on more than 100 aircraft types globally. Permaswage has three sites in California, France and China. From here it serves the major aircraft manufacturers which includes Airbus and Boeing.
Under Bridgepoint ownership, the business invested in new equipment for its manufacturing operations. It made two add-on acquisitions and opened a manufacturing site in Suzhou in China. In addition, it intensified its focus on Research and Development to launch new products.
Earlier this week, it emerged Bridgepoint will pay a £150 million dividend to investors, as part of the refinancing of sandwich chain Pret a Manger.
Last month, Bridgepoint acquired a controlling stake in The Flexitallic Group, a specialist producer of sealing product technology for the oil, gas and energy sectors, from Paris-listed Eurazeo, for €450 million.
Following that investment, its €4.84 billion Europe IV, a 2008 vintage, is 75 percent deployed. It is understood the firm has no immediate plans to come to market as it has still has capital available for new investments, but it may raise a successor fund next year, a source told PEI at the time.