Our Companies
Background
DFP is a well established branded valves and fittings manufacturer based in the North West of England. It has a blue chip customer base including TRANSCO (British Gas), United Utilities and BSS, as well as significant export sales.
Deal Information
Deal size: £4.5 million
Deal size at exit: Undisclosed
IRR: 28.7%
Date of investment: April 2002
Date of exit: February 2004
Sold to: Management
Investment rationale and value creation
We recognised the potential for this business with its highly specified products and strong brand recognition. The business had a flexible design and manufacturing capacity and a long, stable customer base. De-regulation in the gas industry and new water legislation meant that it was well placed for significant growth, both in profits and geographically.
We worked alongside management and an experienced chairman to improve financial control and invest in the business to improve manufacturing operations and achieve target growth.
