LDC seals £85m Bifold buyout

PRIVATE equity house LDC has sealed another North West deal, after taking a stake in Middleton-based Bifold Group, a manufacturer of hydraulic and pneumatic valves to industry and the oil and gas sector.

LDC is now Bifold’s third private equity backer in the last five years. It is understood to have invested through a buy-out which is understood to value the firm at around £85m.

Its most recent shareholder was Caird Capital – a successor of Bank of Scotland Integrated Finance (BoSiF), which invested in the business in a £35m buy-out in 2007. The first deal was a £3.25m deal with Barclays Ventures in 2002. All three have been led by Bifold Group managing director Gary Jacobson.

Bifold can trace its roots in the region back more than 120 years – it was formed in Wigan making lamp parts for miners and valves for ships.

Sales in the year to last August were around £25m, but are likely to be nearer £40m this year due to strong growth in international markets. It has set a growth target of £100m by 2017. As well as its Middleton base, it has sites in Singapore and Texas, and employs 240 people.

Bifold Group was advised on the sale by Altium Group. Its Manchester-based managing director Simon Lord said the company had witnessed “significant interest from trade buyers”.

“However, Gary and his team have got so much belief in the business that they’ve decided to go with it hagain. Gary is a fantastic chief executive and it’s a good deal for LDC and all of the local advisors.”

The deal continues a recent burst of activity by LDC in the North West, with investments made into Airline Services and TD Travel in the last few weeks.

LDC has acquired all of Caird’s shares in the company, and some of the equity held by Mr Jacobson and his management team. The buy-out firm now has a significant minority stake in the business.

Law firm Addleshaw Goddard also advised Bifold Group.