Keensight scores 12x on final LDR exit

The divestment yielded 12x returns for Keensight against its initial investment in 2005, and 3x against its re-investment in the run-up to the company's IPO.

LDR raised $75m on the Nasdaq following its listing in October 2013. The IPO saw the company sell 5 million shares at $15 apiece, with an over-allotment option of 750,000 shares.

After the flotation, Keensight remained the company's largest shareholder with a 16.4% stake – down from 21.1%. Meanwhile, co-investors Austin Ventures, Telegraph Hill Partners and PTVSciences retained holdings of 14.3%, 13.5% and 8.8%, respectively.

LDR stated it would use the proceeds of the listing to finance the production and marketing of a new product backed by the US Food and Drug Administration.

The company also sought to repay the debt facility supplied by Escalate Capital Partners, according to LDR's Securities and Exchange Commission S-1 filing.

This is the third divestment in recent months by Keensight, which reported 5x returns over the two previous deals. These included Italian telematics service provider Octo and software developer FircoSoft.

In addition, the firm invested in French orthopaedic prostheses and dental implants supplier Menix in April 2014. The buyout, also featuring capital from CIC Finance and Turenne Capital Partennaires, is thought to have been valued at between €25-50m.

Previous funding
Keensight acquired LDR in 2005 via its fund II, with mezzanine debt supplied by Escalate Capital Partners and then refinanced via senior debt from Comerica. The GP later drew capital from its fund III to reinvest in the company in the run-up to its IPO.

According to market sources, a total of €10m was injected into LDR since the first investment took place in 2005. 

Company
Founded in 2000, LDR is a designer and developer of spinal implant devices designed to facilitate spinal surgery procedures. Headquartered in Troyes, France, its network of offices extends to Austin in the US, as well as Sao Paulo, Seoul and Beijing.

The business claims to have increased its turnover from $91m in 2012 to $141m in 2014, two-thirds of which come from the US.

People
Keensight Capital was represented by managing partner Pierre Rémy. Christophe Lavigne, Hervé Dinville and Patrick Richard are LDR's founding managers.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• France
• Exits
• France
• IPO