Bifold goes for integrated deal

Manchester-based oil and gas valve manufacturer, Bifold FluidPower has completed a £35m MBO funded by Bank of Scotland Integrated Finance.

The secondary buyout sees the management team, led by managing director Gary Jacobson, increase its majority equity stake while the bank takes a minority equity stake in the company.

The deal provides a full exit for Barclays Ventures, which backed the initial MBO of the company in 2002. Bifold, based in Middleton in Manchester is a 100 year old precision engineering company and has offices in Houston and Singapore. It designs and manufactures directional control valves and pumps used in a wide range of valve and process applications within the oil and gas sector. Applications for the valves include: onshore and offshore production; floating production, storage and offloading (FPSO) units; refineries; and pipeline installations.

In April 2006 Bifold acquired Marshalsea Hydraulics Limited, a complementary manufacturer of hydraulic pumps, electric motor driven pump units and intensifiers.

Frank Summers, Director of Integrated Finance at Bank of Scotland added:

“With an experienced management team boasting a proven track record of delivery, Bifold has a very strong position in a niche market that shows excellent growth prospects. We are delighted to be delivering continued support to a highly successful company, operating on a global basis. Our experience in investing in the oil and gas sector means that we are well positioned to support the growth of UK based oil and gas services companies operating on a global stage.”

Altium (Simon Lord, Adrian Reed and David Foreman) was lead financial adviser to the transaction and management were also advised by Jim Tully and Paul Medlicott of Addelshaw Goddard (legal). Bank of Scotland Integrated Finance was advised by Jonathan Watkins and Matt Christmas of DLA Piper (legal) and Alec Carstairs of Ernst & Young (financial).