CCMP makes 3.5x its money on Edwards sale

Target: Edwards Group Ltd

Price: $1.5 billion

Multiple: 3.5x

Sponsor: CCMP Capital Advisors

Buyer: Atlas Copco AB

CCMP is making a 3.5x return on its investment in Edwards, according to a source. Atlas Copco AB, which announced its purchase of Edwards in August, said Thursday that the company achieved its 2013 revenue targets and shareholders will get an additional $1.25 a share. The total purchase price for Edwards comes to $1.5 billion.

U.K.-based Edwards makes highly engineered vacuum pumps and related products for customers in sectors such as semiconductors, flat panel, industrial and food packaging. Edwards produced revenue in 2012 of 595 million pounds (US$995.97 million), Moody’s Investors Service said in an August note.

CCMP’s investment in Edwards dates back to May 2007 when the New York firm acquired the company in a $1 billion transaction. The deal included $325 million in equity, according to a Moody’s report from that time. The investment came from CCMP’s second fund, which collected $3.4 billion in 2007.

The Edwards investment is generating a 23 percent IRR for CCMP Fund II, the source said.

Another strong exit came last month. CCMP agreed to sell Medpace, a pharmaceutical contract research organization, to British buyout shop Cinven Ltd in a deal valued at $900 million. The Medpace investment also came from CCMP’s second fund. The sale generated a 3.5x return and 48 percent IRR for CCMP, the person said.

The sales come as CCMP is finishing up fundraising for its latest pool. CCMP is seeking $3.5 billion for its third fund, sources said. The firm is expected to complete marketing for CCMP Capital Investors III LP this month, a placement agent said.

Formerly known as J.P. Morgan Partners and before that Chase Capital Partners, CCMP Capital spun out of the bank in 2006. CCMP makes buyout and growth equity investments. The firm typically invests $100 million to $500 million equity per deal. Sectors include consumer/retail, healthcare, energy and industrial, according to the CCMP website.

Executives at CCMP declined comment.

Luisa Beltran is a senior writer for peHUB.