Bridgepoint lands 4.2x, DIC pays £600m

Middle Eastern investment firm Dubai International Capital has bought Alliance Medical from Bridgepoint for £600 million (€862 million; $1.248 billion).

Bridgepoint grew the business to make a 4.2 times return with 16 European acquisitions, a partner at Bridgepoint Rob Moores said. In the year to March 2007 the business had revenues of £132 million. Since 2001, Alliance Medical’s revenues have increased sixfold and the number of employees has risen from 177 to 690.

The UK buyout firm had just under £300 million of debt in the business at the time of sale, Moores said.

The business’ EBITDA is equivalent to £56 million taking into account recent bolt-ons, Moores said. When Bridgepoint acquired the firm for £86 million in 2001 its EBITDA was £9.9 million, he said.

The firm could have exited the business with a three times return last year to a UK private equity firm, although it decided to hang on to the business for longer, believing it could hold out for a stronger return.

Moores said Bridgepoint helped secure the management succession of the company with its founder and former chief executive Robert Waley-Cohen stepping up to deputy chairman in 2005, while Alan Pilgrim took over his executive role. Pilgrim was formerly at Community Hospital Group which was bought by rival hospital group Capio.

DIC bought Almatis from the Canadian firm Teachers’ Private Capital and European buyout firm Rhône Capital in the largest secondary deal since the problems in the credit markets began on Friday. Terms were undisclosed, but the bid had $1 billion (€691 million) of debt at more than six times debt to EBITDA multiples, according to someone close to the deal.

The firm also bought a 9.9 percent stake in Och-Ziff for $1.18 billion as the US hedge fund manager approaches an initial public offering.

The investment firm’s backer Dubai Holding, through subsidiary Dubai Financial, last week also increased its stake in Greek-listed investment firm Marfin Investment Group and in Marfin Popular Bank to 16 percent and 19.9 percent respectively for €612.1 million ($882.3 million).

Dubai Holding is wholly owned by the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. Dubai Holding contrasts its status with the Istithmar investment company, which is funded by the Dubai government. DIC also invests on behalf of high net worth clients.