Private equity fund in £8.5m aerospace deal

CARDIFF-BASED private equity fund WestBridge Fund Managers (WestBridge Capital) had made its biggest investment to date in backing a £8.5m management buy-out.
The deal has enable a management team to acquire Devon-based Aero Stanrew – one of the UK’s leading designers and manufacturers of specialist electronic components for the global aerospace industry
WestBridge, which was established in 2008, has provided £4.2m in equity finance.

Aero said it will use the growth finance to exploit emerging overseas markets to increase sales and profits at the company following a management buyout.
With a workforce of 172 the £11m turnover business supplies complex electromagnetic modules and electronic systems to blue chip customers including Rolls Royce, GE Aviation, Goodrich and Thales.
As well as its headquarters in Barnstaple it has a manufacturing site in Tunisia.
Clive Scott and his team – Chris Evans, Owen Rolfe and Peter Vaughan – led the buyout after being with the company for a combined total of 40 years
Mr Scott said: “Although Aero Stanrew is already in a very strong position with a strong order book and recession-resistant business model, this deal provides us with the opportunity to pursue ambitious plans for further growth.
“We are particularly pleased to have backing from WestBridge because the team there already has a proven track record in our sector and have a refreshing approach to investment.
“They have a network of industrial investors who deliver practical, hands-on advice and guidance that is borne out of experience. It’s truly an added-value service that provides much more than just money.”
A member of WestBridge Capital’s co-investment club, Phil Crawford-Smith, has been appointed independent chairman of Aero Stanrew.
He said: “I’m delighted to have been invited to take up this role. Clive and the team are strong operators who’ve built an exceptionally well positioned business.
“I’m looking forward to working with them to develop Aero Stanrew even further over the next few years and take full advantage of the comprehensive market opportunities available to the company.”
Guy Davies, chief executive of WestBridge, said: “We are pleased to support the entrepreneurial vision of Clive and his management team by providing funding that enables them to pursue ambitious and realistic plans for continued growth.
“This is a very robust business and its value will be considerably enhanced as the team builds on its strategic approach to business development. The directors have strong knowledge and experience of the sector. Working closely with them, we have already identified and agreed a number of key strategies for growing the business over the next few years.
“Emerging markets, particularly in the Far East, are expected to drive future growth in the global civil aerospace market and we fully intend to exploit all the opportunities this presents.”
Mr Davies added: “Aero Stanrew will also extend its product range, enter new markets and the team will continue adopting a proactive approach to marketing and new business development. In fact, we’ve already got a number of exciting opportunities in our sights.
“Add to this, the fact that conservative estimates predict the production of 26,000 new passenger aircraft by 2029, and we see a very bright future indeed.”
WestBridge is in the process of raising finance for up to a £50m SME fund. Fundraising will close next month. At first close it had secured more than £10m in backing. WestBridge has an investment range of between £1m to £5m in high-growth potential SMEs.
Guy Davies, chief executive of WestBridge Capitalhttp://tourism9.com/    http://vkins.com/