More proof of signs of recovery in the IPO market is Bridgepoint’s realisation of its investment in Corin Group, a developer, manufacturer and distributor of reconstructive orthopaedic devices. Bridgepoint has doubled its original investment in the company, following the placing of ordinary shares at 111 pence, which values Corin at GBP38 million on flotation.
Bridgepoint led the GBP21 million buyout of Corin in 1993. Other VC investors holding minority shares included 3i, PPM and Granville, who have also all sold their shares in the company. The proceeds of the placing will be applied towards redemption of preference shares (GBP19.1 million) and additional working capital of GBP3 million. The flotation will represent a total exit for Bridgepoint and is a rare example of an IPO for the firm, which normally exits through trade sales.
Alan Lewis, a Bridgepoint managing director, said: “Although we have never been IPO-dependent, with the vast majority of our realisations achieved by trade sales, it is pleasing to see that a mid-market company like Corin can come successfully to the market.”
Founded in 1985, Corin generated pre-tax profits of GBP1.7 million last year on turnover of GBP14.1 million. The company develops, manufactures and distributes predominantly hip and knee reconstructive orthopaedic devices. Its principal focus is on joint replacement for the treatment of degenerative arthritis, with a particular emphasis on young, active patients.
Other healthcare companies in Bridgepoint’s portfolio include Alliance Medical, an operator of diagnostic imaging equipment, which was the subject of a EURO178 million MBO in 2001 and Match Group, a provider of flexible staffing to the healthcare sector, a EURO117 million PTP in 1999.