Equistone to exit Bulgin to Infinite Electronics

Ero Partsakoulaki
20 January 2023

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Equistone has agreed to sell its majority stake in Bulgin, a UK manufacturer of environmentally sealed connectors and components, to Infinite Electronics, a Warburg Pincus-backed portfolio of in-stock connectivity solution brands.

Joining the California-based company will allow the Bulgin brand to accelerate access into its largest market in North America, according to a press release.

The acquisition sees Infinite Electronics, backed by Warburg Pincus since March 2021, reinforce its presence in Europe and comes after the company agreed to acquire Netherlands-based specialty cables producer Cable Connectivity Group in November, according to the buyer's press release.

Equistone ran a sale process for the business advised by Houlihan Lokey, Mergermarket reported in September 2022. Bulgin was expected to be marketed off annual EBITDA in the region of GBP 15m-GBP 20m, as reported. In the year ended 30 January 2022, Bulgin booked gross profit of GBP 14.8m against turnover of GBP 38.8m, Companies House filings showed.

The pan-European sponsor acquired a majority stake in the company from Elektron Technology in July 2019 for an enterprise valuation of GBP 105m, according to Unquote Data. The management team at the time acquired a minority shareholding alongside the sponsor.

The original investment was made via Equistone Partners Europe Fund VI, which held a final close in March 2018 on its EUR 2.8bn hard cap. The GP is investing its sixth flagship fund, which is about 75% deployed, Unquote reported. The vehicle invests EUR 40m-EUR 250m in Benelux and Western European countries (especially France, Germany, Switzerland and the UK) lower mid-market companies with enterprise values typically between EUR 50m to EUR 500m.

Under Equistone's ownership, Bulgin has grown significantly, opening a new site in Tunisia and new headquarters in Cambridge, UK, as well as investing in product development and implementing a new data and analytics platform to support sales, according to the press release.

Equistone has recently launched its Equistone Reinvestment Fund, with a mandate to make minority re-investments alongside new sponsors following a portfolio company exit from one of its main buyout funds.

Company
Headquartered in Cambridge, UK, Bulgin is a manufacturer of harsh environment connectivity solutions. These include circular connectors, switches and power-related components, which are environmentally sealed to withstand harsh conditions such as exposure to extreme temperatures, water and humidity. Founded in 1923, the company has a global customer base of more than 75,000 end users in markets such as industry 4.0, robust electronics, transportation and infrastructure and medical technologies. The business employs over 680 people across its locations in the UK, North America, Asia-Pacific and North Africa.

People
Equistone − Paul Harper (partner), Tristan Manuel (investment director).
Bulgin − John Wilson (CEO).
Infinite Electronics − Penny Cotner (president & CEO).

Advisers
Vendor − Houlihan Lokey (M&A); Travers Smith (legal).
Buyer − William Blair (corporate finance); Cleary Gottlieb Steen & Hamilton (legal).