Bridgepoint has sold its stake in Sondex in a GBP33 million secondary buyout transaction to Bank of Scotland corporate banking and management. Bridgepoint committed GBP10 million to the GBP20 million buyout of the firm in 1998. The Hampshire-based company manufactures high tech monitoring equipment for oil wells. Under Bridgepoint’s ownership the business has grown as a result of significant focus on research and development and turnover has increased by over 25 per cent per annum over the past three years
Alec Carstairs of Ernst & Young, which advised on the transaction, said: “As VCs look to realise their investments from the companies in their portfolio, secondary buyouts, such as this, are set to become more common.” He added that new shareholder, Bank of Scotland will enable the company to remain independent, while retaining the same management team at the helm to drive the company forward to the next stage of its rapid development.
The funding provided by Bank of Scotland will allow the business to continue its current organic growth and will position the company well for a potential stock market flotation.
The deal was structured by Kenny Hughes, David Hornby, Andrew Fairley and Ben Barker from Bank of Scotland’s integrated finance team.