Arrowpoint Advisory’s Industrial sector team has advised Elektron Technology plc on the divestment of Bulgin for £105m, to Equistone, the leading European mid-market private equity investor. The transaction is expected to formally complete in September 2019.
Founded in 1923 and headquartered in Cambridge, Bulgin develops and manufactures connectors and related components for harsh-environment applications, in sectors including industrials, transport & infrastructure and medical technology. It has locations in the UK, North America, Asia-Pacific and North Africa. The company supplies c.92,000 end users across Europe, North America and Asia-Pacific through its direct sales team and a network of third-party distributors. Bulgin’s management has successfully invested in the development of new cutting-edge fibre and sensing products and rationalised its product range and distributor base. The business employs c.680 people and has rapidly grown to generate revenues in excess of £30m at market-leading EBITDA margins over recent years.
Current Elektron Group CEO and Bulgin Executive Chairman, John Wilson, will lead Bulgin alongside the rest of the incumbent management team under Equistone’s ownership.
John Wilson, Executive Chairman of Bulgin, commented: “I would like to thank Graham, Tom and the rest of the Arrowpoint Advisory team for being a hugely supportive and committed partner throughout the process. Their commercial and technical knowledge of our market was invaluable in delivering Bulgin the right partner in Equistone and the best possible outcome for all of the stakeholder groups involved.”
Keith Daley, Executive Chairman of Elektron Technology plc, commented: “We chose to work with Arrowpoint Advisory due to their experience and expertise in working with companies like Bulgin and in corporate divestments more widely, and they haven’t let us down. Their market knowledge alongside a thorough and detailed approach and 100% commitment, has proven invaluable for us in securing the best partner to take Bulgin forward and the right deal for Elektron Group as a whole.”
Tom Smith, Director at Arrowpoint Advisory, commented: “We are very pleased to have assisted Elektron in such a transformative divestment for the Group and our team’s fifth successful corporate divestment since 2017. It has been an absolute pleasure working with Keith, John and the rest of the team and following a highly competitive process, we are very pleased to deliver Bulgin to an excellent new home in Equistone.”
Graham Carberry, Managing Director at Arrowpoint Advisory, commented: “Bulgin is a high value technical manufacturer selling into critical applications and therefore sits at the very core of our Industrials focus and expertise. This is also another material divestment on behalf of a listed UK manufacturer, following on from our successful work with the likes of Smiths, Meggitt and Morgan Advanced Materials.”
The completion of this transaction further reinforces Arrowpoint Advisory’s position as advisers of choice to listed UK companies in the industrials sector, following on from the 2018 divestments of Smiths Group plc’s Hydrodynamic Bearings businesses and Meggitt Plc’s photo-chemical etching company, Precision Micro.