Bifold Completes Management Buyout
Manchester, U.K.-based oil and gas valve manufacturer, Bifold FluidPower (Holdings) Limited has completed a £35 million management buyout funded by Bank of Scotland Integrated Finance.
The secondary buy-out sees the management team, led by Managing Director Gary Jacobson, increase their majority equity stake whilst the Bank takes a minority equity stake in the Company.
The integrated debt and equity package provided by Bank of Scotland Integrated Finance includes an acquisition finance facility that will facilitate the company’s growth in the buoyant oil and gas market. The deal provides a full exit for Barclays Ventures who backed the initial MBO of the company in 2002.
Bifold, based in Middleton in Manchester with offices in Houston and Singapore, is a fast growing precision engineering company that has been in business for over 100 years. The Company 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. Bifold has a reputation for delivering innovative solutions and quality products to the market place, as evidenced by the range and breadth of its international customer base.
In April 2006 Bifold acquired Marshalsea Hydraulics Limited, a complementary manufacturer of hydraulic pumps, electric motor driven pump units and intensifiers.
Bifold has been a client of the Bank since 2002, when Bank of Scotland Corporate assisted in financing the original MBO.
Gary Jacobson, Managing Director of Bifold, said:
"Bifold is one of the fastest growing manufacturing businesses in the Oil and Gas Industry. This growth has been facilitated by the Bank of Scotland who been a supportive funder. Bank of Scotland Integrated Finance supported the significant increase in engineering staff, the acquisition of Marshalsea Hydraulics and the purchase of state of the art hardware, giving Bifold one of the most advanced manufacturing facilities in our industry. With this support, it is our aim to offer our customers market leading products, quality, technical support and service available from our market."
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. This latest deal is yet another example of our ability to deliver a truly unique and powerful funding proposition to companies operating within this highly competitive sector."
The transaction was structured and arranged for Bank of Scotland Integrated Finance by Frank Summers, Ritchie Clark, Angus Allan and Marcin Zaboklicki.
Simon Lord, director at Altium, commented: "Altium was able to deliver all the strategic options that management required and they were then able to choose their preferred route. Bank of Scotland's Integrated Finance solution allows value to be crystallized now and management to retain a majority shareholding."
Altium were lead adviser to the transaction (Simon Lord, Adrian Reed and David Foreman) 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).
Bank of Scotland Corporate, part of HBOS plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets. Bank of Scotland Corporate employs over 8,300 employees with total lending of £85.3 billion at December 2006. With experience across many areas of corporate finance, including Integrated Finance, Joint Ventures, Structured Finance, Acquisition Finance, Infrastructure Finance and Housing Finance, Bank of Scotland can draw on an expert pool of professionals with proven track records. Since launching its groundbreaking Integrated Finance unit back in 2000, the Bank has transacted 110 deals with a total funding of over £9 billion. Today Bank of Scotland Integrated Finance provides funding to more mid-market MBOs than any other bank in the UK by providing a unique one-stop financing solution which meets all the funding requirements for a business undergoing a transaction.