Baird acquires e2v technologies spin-off for £15m

Greg Gille
16 May 2012

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Baird Capital Partners Europe has acquired the instrumentation solutions business of listed UK firm e2v technologies for ТЃ15m.

The deal sees e2v divest its subsidiaries e2v Scientific Instruments, e2v microsensors along with its industrial gas sensing businesses. The divisions were considered non-core by the seller, which will now focus its ressources on key growth areas as well as its regional expansion in the US and Asia.

Debt fund Beechbrook Capital provided leverage for this transaction. The business will be renamed SGX Sensortech Limited.

Baird stated it had been on the lookout for the right investment opportunity in the test, measurement and process controls industry for the last few years. The firm notably believes that SGX will benefit from demand from companies and regulators to measure environmental, health and safety issues.

Baird notably foresees strong growth prospects in the automotive air quality sensor market, which it believes is worth around €34m and is expected to grow at double-digit rates to approximately €62m by 2016.

Company
SGX designs and manufactures sensors that provide environmental as well as health & safety research and analysis to customers in Europe and Asia. Its clients list includes automotive companies Volvo, VW and Renault.

SGX's products include high-specification x-ray detection sensors used in industries such as the pharmaceutical sector and academic research; pollutant gases sensors for the automotive industry; and combustible and toxic gas sensors used in the mining, industrial and chemical sectors.

SGX posted a £14.8m turnover in the year to 31 March 2012, generating net operating profits of £900,000.

People
James Benfield and Simon Havers led the deal for Baird. Baird operating partner David Barrass was appointed chairman of SGX, while Graham Hine and David Bridgeland were appointed group CEO and finance director respectively.