Graphite Capital has acquired Beck & Pollitzer, a provider of industrial machinery installation and relocation services. The seller was Bridgepoint Development Capital. No financial terms were disclosed.
Graphite Capital, a leading mid-market private equity specialist, has acquired Beck & Pollitzer, which provides industrial machinery installation and relocation services, from Bridgepoint Development Capital for an undisclosed sum.
Beck & Pollitzer’s blue chip clients, which include Toyota, Jaguar Land Rover, Rolls Royce, Rexam, Kimberley Clark and many other international brands, operate principally in the automotive, aerospace, metals and packaging industries. The company’s services range from moving single machines to the relocation of entire factories and installation of complex production lines. Beck & Pollitzer employs more than 600 staff in 26 offices located in 14 countries and executes projects worldwide.
The company, which was established over 150 years ago, has a strong presence in the UK and across continental Europe, and is growing strongly in North America and Asia. Its geographical and sector diversity has enabled the business to expand despite the challenging macro-economic conditions of the last ten years. Revenue is expected to reach £80 million in the current year, a rise of circa 10 per cent on 2015.
The management team, led by chief executive Andrew Hodgson, plans to increase the company’s share of a growing market, currently valued at some £1.8 billion. It expects to grow organically by developing opportunities in existing and new markets and by building on its long-term client relationships. It is well positioned to expand in sectors such as building products, aerospace and steel, having won several large contracts with a German specialist steel plant manufacturer. In addition, Beck & Pollitzer is evaluating acquisitions to expand and deepen its geographical coverage, increase its market share and broaden its capabilities.
As part of the transaction, the management team has re-invested a significant proportion of its sale proceeds. RBS and HSBC provided the bank finance for the transaction.
Graphite brings strong experience of investing in sectors and companies related to Beck & Pollitzer’s operations including in U-POL, a manufacturer and distributor of auto-refinishing products, Micheldever Tyres, the UK’s leading tyre distributor, and Aktrion, an outsourced service provider to the print, automotive and food sectors.
Graphite senior partner Mike Innes said: “We know Beck & Pollitzer well and have been impressed with the achievements of Andrew and his team over the last few years. We are delighted to support their ambitious international growth plans.”
Beck & Pollitzer chief executive Andrew Hodgson commented: “We are looking forward to working with Graphite to realise Beck & Pollitzer’s potential over the coming years. There are exciting opportunities ahead which we intend to exploit fully with Graphite’s expertise and support.”
Alongside Mike Innes, partner Simon May and investment manager John Western managed the transaction for Graphite.
About Graphite Capital
Graphite is a specialist provider of private equity finance to mid-market companies in the UK. It focuses on management buy-outs and also invests in replacement capital, expansion finance and turnaround opportunities, backing companies with enterprise values of £25 million to £200 million.
In September 2013 Graphite raised £500 million for its eighth fund, Graphite Capital Partners VIII. The Beck & Pollitzer transaction is the sixth investment by that fund. The other fund’s investments are: pub restaurant group New World Trading Company; City & County Healthcare Group, the UK’s fourth largest home care provider; nGAGE, a fast-growing recruitment business serving a range of niche areas within the public and private sectors; ICR, an energy industry repair and maintenance group; and Aero Technics, a civil aircraft maintenance business focusing on cabin services.
Graphite’s previous fund invested in businesses in a variety of industry sectors including: Kurt Geiger, luxury shoe retailer; Alexander Mann Solutions, the global market leader in recruitment process outsourcing; Education Personnel, the leading provider of supply teachers and teaching assistants to state schools in the UK; and London Square, a house-builder focused on prime sites with the M25.
See the website: www.graphitecapital.com