WestBridge nets 4.3x on Aero Stanrew trade sale

WestBridge scored a 4.3x multiple on the exit, equating to an IRR of 45% over a three-year holding period.

The GP backed an £8.5m management buyout for the business in February 2012; since then, WestBridge claims that revenues and profits have more than doubled. Aero Stanrew is expected to post sales of £18m for the year ending in February 2016.

In addition, headcount is believed to have increased by 50%.

The deal marks WestBridge's second exit for 2015 and the second divestment for its SME fund. Back in February, the GP sold its 34% stake in software company Kallidus to FF&P Private Equity. The deal marked the first exit from the Westbridge SME Fund - it generated a 3.7x return and an IRR of 32%.

Company
Founded in 1945, Aero Stanrew designs, develops and manufactures specialist electronic components for the aerospace and defence industry. It primarily manufactures magnetic and electromagnetic systems such as power transformers, current transformers, filters, inductors and solenoids. The firm is based in Barnstaple.

TT Electronics is a provider of engineered electronics for performance-critical applications. It is listed on the London Stock Exchange.

People
Managing partner Guy Davies and partner Sandy Smart worked on the original deal for WestBridge.

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• Topics
• Exits
• Industrials
• UK / Ireland
• Trade sale
• WestBridge Fund Managers