LGV makes 4x in sale to Bridgepoint

Bridgepoint's third deal from its 2008 fund - now 14 percent deployed - has proved positive for the captive private equity unit of Legal & General.

LGV Capital will generate a return of four times its invested capital on the £257 million (€293 million; $402 million) sale of chemical and biological testing business LGC Group to Bridgepoint.

The sale process, which saw Bridgepoint beat both private equity and trade competition, commenced in November, with second round bids being received on Wednesday.

“This was a highly attractive business that drew a lot of interest,” said Euan O’Sullivan, associate director at LGV. “That was reflected in both the prices that were offered in the second round and in the deliverability of those offers. As a result we were able to move swiftly from receipt of final offers to exchanging contracts with Bridgepoint.”

LGC Group is headquartered in Teddington, West London, and provides chemical and biological analysis services and reference materials. For the year ending 31 March 2009, it posted revenues of £119.6 million and EBITDA of £19.9 million.

LGV originally acquired LGC Group in 2004 and subsequently set about a buy-and-build strategy that saw it complete seven bolt-on acquisitions during its period of ownership. LGC Group was advised by KPMG Corporate Finance and Ashurst on the transaction.

For Bridgepoint, the deal marks its third investment from its €4.8 billion Fund IV closed in October 2008. It is now around 14 percent deployed.