Background
Founded in 1987 in Poole, BOFA International is a double Queen’s award-winning British extraction system manufacturing company. It also has a fast-growing subsidiary in the USA, and last year opened an office in Germany to offer sales and technical support, customer services and warehousing. In total, BOFA sells 90 per cent of its products to more than 120 countries worldwide, and earlier this year was recognised as one of the fastest growing exporters in the Sunday Times/HSBC International Track 200.
Issue
Following Quantuma partner Ian Barton’s previous advice to BOFA and its shareholders, leading LDC and the management team on its £23M management buy-out in 2015, Ian was called in once again to advise on the deal of a sale of BOFA International.
Outcome
Having invested in 2015 at a valuation of around £23m, with the advice of Quantuma, LDC exited the business in 2018 for £90m, having invested in the whole business to more than double profits over 3 years. This deal has provided an exit for private equity firm LDC as buyer, NYSE-listed Donaldson Company takes an 88 per cent stake. Donaldson is a global leader in the industrial air filtration market, manufacturing filtration systems and parts into a variety of industry sectors, including commercial/industrial, aerospace, chemical, alternative energy and pharmaceuticals.
Quotes
Ian Barton, Partner at Quantuma said: “The deal demonstrates the successful partnership of private equity investment and management to deliver exceptional growth. Having advised LDC and the management team on the initial buyout of BOFA in 2015, I have watched the business develop and grow at an outstanding rate over the past three years, which is testament to the commitment of both the management team and LDC. Donaldson represents the ideal buyer for the business and will support BOFA’s further international ambitions. This is great success story for all involved in the deal and for the south coast business community, and we wish BOFA and Donaldson well for continued success.”
James Oliver, Finance Director at BOFA International said: “The management team are excited to be partnering with Donaldson for the next phase of growth at BOFA. Before and during the process Quantuma regularly demonstrated their understanding of our business and technology. The deal has provided a tremendous opportunity to accelerate our growth and serve our customers even better.
We were pleased to have Ian as our advisor on this transaction. Having got to know the business well since the MBO he was ideally placed to help us secure a deal with such an excellent partner.”
