Silverfleet Capital

BST

Business overview

BST Safety Textiles (now known as Global Safety Textiles) is a leading, global automotive supplier, focussed on the development, production and marketing of airbag fabrics.

Investment rationale

With operations across Europe and a small presence in the US, BST had a strong market position due to its cost and technology leadership. We were attracted to BST’s strong customer and supplier relationships, strong R&D and outstanding reputation for product quality.

Following our €86 million acquisition in August 2005, we pursued a strategy of growing the business through increasing its market share in the US, by increasing its international presence organically, by realising some economies of scale and through the sale of non-core operations.

Value creation

Shortly after our acquisition, we appointed a new Chairman and worked with management on the expansion of the US business, as well as entering the Asian market.

Outcome

Following an unsolicited approach soon after our investment, we initiated a sales process that resulted in the €157 million trade sale to International Textile Group in September 2006, generating a 2.1x return and an IRR of 72%.