Baird Capital Partners Europe has sold Paddock Holdings Ltd., a British manufacturer of multipoint door locks, to Sweden’s Assa Abloy. No financial terms were disclosed, although BCPE reports a 2.7x return on its £8.9 million investment from four years ago.
Baird Capital Partners Europe (“Baird”), the UK-based middle market private equity investor, today announced the sale of Paddock Holdings Limited (“Paddock”) to ASSA ABLOY, the global leader in door opening solutions. Paddock, based in Walsall, England, is the UK’s largest manufacturer of multipoint door locks and distributor of door and window hardware.
The exit represents a 2.7x return on investment and demonstrates Baird’s ability to deliver value through its international operating resources in spite of a tough economic environment.
• Baird led the buy-out of Paddock from its founder in 2006, backing the then sales director, Nigel Hutchinson, to lead the business.
• At the time of the deal Baird introduced David Fraser, one of its operating partners, and instigated the strengthening of the team with new operations, sales, technical and finance directors.
• Baird’s international operating resources led the development of Paddock’s Asian sourcing capabilities and introduced India-based engineering design and product development partners.
• Operational improvements and off-shore savings drove record profits, including a significant increase in gross margins, over the course of Baird’s involvement.
James Benfield, Director of Baird Capital Partners Europe, said “when we were first introduced to Paddock we saw a business that was operationally undermanaged, with a failing Asian supply chain and poor customer service. However, there was a strong brand, a talented core management team and a market-leading product that customers valued. By combining Paddock’s strengths and Baird’s operating resources, we have been able to transform the business into the dominant player in its sector.”
“We approached ASSA ABLOY at the time of the buyout, as the key acquirer in the sector and maintained a relationship with them during our investment period. Under Baird’s ownership, the business has developed internationally into US, Europe and Asia and I have no doubt that, as part of ASSA ABLOY, the business will continue its successful international expansion.”
Paddock CEO, Nigel Hutchinson added “Baird has been a fantastic partner for us over the past years. They have been highly supportive of our growth strategy in a tough market and provided real help and significant operational expertise through their international network.”
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For further information:
Baird Capital Partners Europe T: +44 (0)20 7667 8400
James Benfield T: +44 (0)20 7667 8457
Merlin T: +44 (0)20 7726 8400
Vanessa Maydon / Rachel Thomas T: +44 (0)7787 504 447
Notes to editors
Baird Capital Partners Europe, the U.K.-based buyout firm of Baird Private Equity, invests in U.K. middle market companies with an established annual turnover of £10m to £100m. Since 1971, it has completed over 150 private equity investments in the business services, manufactured products and healthcare sectors, where it has deep experience, knowledge and ability to add value. The group backs management teams with a strong track record and desire for further success. Baird Capital Partners Europe is supported by operating resources in China (Beijing, Hong Kong, and Shanghai) and India (Bangalore), focused on facilitating and executing Asia sourcing, manufacturing and distribution strategies for its portfolio companies. For more information, please visit www.bcpe.co.uk.