CCMP books 3.5x off Edwards exit

The firm sold the UK-based manufacturer last August in a deal that was valued at up to $1.6bn.

CCMP Capital Partners has finalised the sale of UK-based vacuum pump manufacturer Edwards Group to Swedish industrial group Atlas Copco for $10.50 per share, according to a statement.

CCMP sold Edwards in August 2013 for an initial price of up to $1.6 billion, or $9.25 per share. However, because Edwards achieved 2013 revenue targets and the company's debt was lowered at year-end, the actual sale price was revised to $1.5 billion or $10.50 per share.

CCMP declined to disclose a return multiple of the deal, but a source familiar with the matter said the sale generated a 3.5x return multiple and a net internal rate of return of 23 percent.

Edwards specialises in industrial vacuum products and related equipment. Its buyer Atlas is expected to merge with the company, Private Equity International previously reported. Edwards raised $100 million in an initial public offering on the NASDAQ in 2012.

CCMP bought Edwards from Linde Group in 2007 in a 50/50 deal with Hong Kong-based Unitas Capital. The acquisition was valued at £505 million ($825 million; €606 million). CCMP invested in Edwards from its $3.88 billion Fund II.

During the holding period, CCMP helped Edwards shift its production to factories in Asia and Eastern Europe. The company grew its earnings before interest and taxes margins from 8 percent in 2007 to 17 percent in 2013.

Last week, CCMP sold healthcare contract research organization Medspace to Cinven for $915 million. The exit generated a 3x return and a 48 percent IRR, according to a source familiar with the matter. CCMP declined to comment on the deal.

CCMP is aiming to wrap up fundraising for its third buyout fund, CCMP Capital Advisors III, which is targeting $3.5 billion. The 2013 vintage vehicle had raised $1.7 billion as of October, according to PEI’s Research and Analytics division.

CCMP specialises in mid-market buyouts and growth equity investments of between $100 million and $500 million in North America and Europe. The firm invests in the consumer, industrial, energy and healthcare sectors according to its website. CCMP operates from its New York, Houston and London offices.