Bridgepoint

Global Design Technologies (GDT), a global market leading aerospace component supplier, has been acquired by Bridgepoint from Stirling Square Capital Partners in a transaction totalling $343 million.

Operating from sites in France (at Les Clayes-sous-Bois, south west of Paris) and the US (Gardena, near Los Angeles), GDT manufactures permanent couplings which are used by aerospace manufacturers to connect hydraulic, air, fuel or other tubing in all types of aircraft. In addition, the company has successfully introduced these couplings to the power generation market where they are used when building or replacing electricity substations.

GDT was formed in January 2005 when Deutsch Metal Component of the US and Permaswage of France were combined following simultaneous management buyouts by Stirling Square Capital Partners.

GDT's global customer base not only includes civil and military aircraft manufacturers such as Airbus and Boeing but also utilities where it now supplies four of the top five utility companies in the US. In addition, GDT also develops and provides fittings and tools for the after market which are used by customers' technicians who are trained by GDT. Customers order either directly, through sub-suppliers or through distributors.

According to John Davison, a director at Bridgepoint, GDT represents an attractive growth opportunity to acquire a market leading aerospace component business in a high growth sector, with an excellent management team, strong intellectual property and a committed customer base.

“The GDT management team has built sustainable competitive advantages in a market offering significant structural growth where further value can be created through investment and selective acquisition opportunities.” he said.

The wider aerospace and defence market is forecast to grow strongly over the next three years backed by committed aircraft orders. Bridgepoint estimates that the permanent couplings aerospace market will grow at 9% per annum to 2010 and that power market growth for GDT's product will be 15% per annum.

Ahmad Diba, who will take over from Angelo Farro as CEO upon completion of the transaction, said: “The outlook for our company is strong thanks to growing demand for our components in the aerospace sector where an increasing number of new aircraft programmes are featuring our products and in the US power market where permanent coupling is gaining market share over more traditional techniques. Further investment from Bridgepoint will allow us to consolidate the progress we have made in the last two years.”

Advisers involved on this transaction included: for Bridgepoint – Jefferies Quarterdeck (corporate finance), Rothschild (debt advisory), KPMG (accounting) and Weil Gotshal & Manges (legal); for Stirling Square – Lazard and Steen Associates (corporate finance), Ernst & Young (accounting) and Ashurst (legal).