Stonebridge Partners Realizes Seven Times Its Investment with the Sale of Boyd Corporation

July, 2011

Stonebridge Partners (“Stonebridge”) is pleased to announce the sale of Boyd Corporation (“Boyd” or the “Company”) to LTI Flexible Products on July 26, 2011. Boyd was acquired from its majority owner and certain key managers and has grown its earnings by over five times since its acquisition by Stonebridge in February 2008. The transaction has resulted in a seven times cash on cash return to Stonebridge’s limited partners. Mitch Aiello, Chief Executive Officer of Boyd, will assume the same position at the combined company, LTI BOYD. The Company engaged Robert W. Baird & Co. to act as its exclusive advisor to sell the business.

Boyd is a leading designer and manufacturer of mission-critical custom fabricated components for leading original equipment manufacturers across various end markets and applications.  The Company manufactures rubberized specialty parts that provide customized engineering material solutions for electromagnetic, acoustical and electrical shielding and thermal insulation applications. Boyd has manufacturing facilities in Modesto, California; Gaffney, South Carolina; Portland, Oregon; and Shenzhen, China.  Please visit www.BoydCorp.com for more information.

The management team successfully implemented a number of strategic initiatives during Stonebridge’s ownership that led to a substantial increase in Boyd’s global market share and diversification into new product lines. These initiatives included establishing a subsidiary and manufacturing operation in China, acquiring a significant competitor on the East Coast, creating a global outsourcing and logistics business and recruiting talented managers to replace and supplement several retiring executives.

Mike Bruno, Managing Partner of Stonebridge Partners stated, “We are extremely pleased to have partnered with Mitch Aiello and his talented management team over such an extended period of time. Under Mitch’s leadership, Boyd weathered several economic cycles extremely well, and he and his team dramatically grew the business while paying off all the Company’s debt in the years leading up to the sale.”

About Stonebridge Partners
Stonebridge Partners, which is celebrating its 25th anniversary this month, is a private equity firm with a focus on recapitalizing and supporting the growth objectives of middle market manufacturing companies. Stonebridge has invested $550 million of equity in approximately 52 acquisitions and is currently pursuing its final investment in Fund IV.  Stonebridge focuses on value-added manufacturing companies, including segments such as packaging, infrastructure support products and specialty manufacturing. Stonebridge has a long history of utilizing its combined Financial/Operating Partner approach to assist talented management teams in growing middle market private companies. 

The sale of Boyd is Stonebridge’s third significant realization over the past 12 months, including the sale of Alpha Packaging in which Stonebridge realized a 3.7 times return on investment, and the sale of The Durcon Company for a return of just under 2 times. The Firm has realized on over 80% of its transactions, generating an aggregate IRR approximating 30%. Stonebridge’s investment returns over the past several years have been almost twice as high as its impressive historical average. Stonebridge will commence raising its fifth institutional fund this coming fall.

For more information please contact Michael S. Bruno, Jr., Managing Partner of Stonebridge Partners, at 914-682-2700 or visit www.StonebridgePartners.com.


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