WestBridge makes its biggest investment
WestBridge Fund Managers, the Cardiff-based private equity firm, has made its biggest investment since it was set up in 2008.
WestBridge invested £4.2m as part of a £8.5m management buyout at Aero Stanrew, an aerospace component maker in Devon.
The buyout was led by managing director Clive Scott. Aero Stanrew, which has a factory in Tunisia, supplies electronic parts to Rolls-Royce, GE, Goodrich and Thales.
Phil Crawford-Smith, a member of WestBridge Capital’s co-investment club, will become chairman of Aero Stanrew.
WestBridge was formed from a management buyout of Wales Fund Managers in July 2008. It has access to funds of £35m, made up of the WestBridge SME fund plus cash available from its network of private investors.
Partner Guy Davies told Insider WestBridge was in exclusive talks over another deal and was working on two more. "I would hope to have one or two more deals by June," he said.
WestBridge, which is backed by a group of industrialists, is raising further funds from institutional investors.
Over the past year, it has put cash into two portfolio companies, e2train and Healthcare Learning. Davies said the latter company, which is based in Cardiff and London, had made profits of £1.1m last year, up from about £400,000 when WestBridge first invested in 2008.
The Stanrew deal was close to the top end of WestBridge's £1m to £5m target equity range. Davies said: "This is a very robust business and its value will be considerably enhanced as the team builds on its strategic approach to business development. The directors have strong knowledge and experience of the sector.
"Emerging markets, particularly in the Far East, are expected to drive future growth in the global civil aerospace market and we fully intend to exploit all the opportunities this presents.
"Aero Stanrew will also extend its product range, enter new markets and the team will continue adopting a proactive approach to marketing and new business development. In fact, we’ve already got a number of exciting opportunities in our sights."
Momentum Corporate Finance advised on the buyout.
