PRIVATE equity house WestBridge Capital has exited Aero Stanrew following its acquisition by TT Electronics plc, a global provider of engineered electronics for performance critical applications.
WestBridge backed the £8.5 million management buyout of Aero Stanrew in February 2012 and has worked in partnership with the executive team for the last three years to develop the business.
During that time, revenues and profitability have more than doubled and the company has deepened its relationships with its blue chip clients.
The company's transformation has been impressive, with sales forecast to be circa £18m for the year ending 28 February 2016.
The deal achieves a 4.3x multiple return for WestBridge investors, and an IRR of 45 per cent over three years.
Headquartered in Barnstaple, Aero Stanrew designs and manufactures ruggedized electromagnetic components and electronic systems for harsh environments and safety critical applications, primarily in the commercial aerospace and military markets.
Since supporting the management buyout, WestBridge has provided both financial support and management development.
As well as delivering impressive financial results during WestBridge's holding period, employee numbers have increased by 50 per cent and the company has received many industry plaudits, including the Queens Award for Enterprise.
Clive Scott, who led the MBO in 2012, will stay on as chief executive officer. He said:
"We have enjoyed working with the team at WestBridge Capital. They have proven to be a supportive partner with a real understanding of the challenges that face a growing business and a practical approach to adding value during the journey."
Sandy Smart, who led the investment for WestBridge with fellow partner Guy Davies, said:
"It has been a pleasure to work with Clive and his management team. They have transformed Aero Stanrew in recent years, turning the company into a true leader in its field.
"We wish Clive and his team continued success in the future and are delighted to have played our part and delivered a substantial return for our investors along the way.
"We enjoy partnering with great management teams. Our experience in helping grow and professionalise innovative businesses like Aero Stanrew means that we can offer tangible support throughout the life of our investment.
"This latest transaction cements our reputation for helping develop growing businesses and delivering impressive returns to investors."