BST

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

Our investment

BST had a strong market position due to its cost and technology leadership, with operations across Europe and a small presence in the US. We liked BST’s strong customer and supplier relationships, impressive research and development, and outstanding reputation for product quality.

After our €86m acquisition in August 2005, we pursued a strategy of growing the business through increasing its market share in the US, increasing its international presence organically, realising some economies of scale and selling 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

We launched a sales process after receiving an unsolicited approach from a potential buyer and agreed a €157m trade sale to International Textile Group in September 2006. This generated a 2.1x return and an IRR of 74%.

Sector

Manufacturing

Location

Germany

Investment date

2005

Exit date

2006

Deal size (exit)

€157m

Fund

Mid-market fund

Status

Realised

Strategy

Key facts

74%

IRR

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