£40m healthcare equipment manufacturer sold to private equity firm

A £40m Hinckley manufacturer of healthcare equipment has been sold by its private equity owner to a fellow investment firm.

LDC has sold Prism Medical to Limerston Capital for an undisclosed sum.

Prism specialises in moving, handling and bathing equipment for elderly, disabled and mobility disadvantaged clients.

LDC first backed the management buyout of Prism in April 2014. Over the past four years LDC has helped the business to accelerate its buy and build strategy, increase exports and invest heavily in new product development.

This has included the acquisition of four complementary businesses – HME, Smirthwaite, Mackworth and TMEC – which together have strengthened Prism’s presence in the mobility and patient handling markets.

Over the same period, Prism has also built a portfolio of more than 180 products – launching an average of five new products a year – and expanded overseas to new markets including Australia and China. International sales now account for 10 per cent of turnover.

Today, the business employs 450 people and for the financial year ending November 2018 it recorded revenues of £40m, up 54 per cent during LDC’s tenure.

Stuart Meldrum, chief executive of Prism Medical UK, said: “Our partnership with LDC provided the financial firepower and strategic guidance we needed to kick-start an acquisitive growth strategy and the team’s support has been instrumental in helping us to achieve our ambitions. They have helped to guide a growth journey that has ultimately seen us expand across the UK, ramp up exports and enter new market segments – all of which means we can bring more of our market leading products to those who need it the most.

“The past four years have been a period of true transformation and we now have an even stronger platform on which to build as we enter the next stage of our journey with Limerston Capital.”

The sale was led by Investment director Matt Newbold and head of South West and Wales Andy Lyndon.

Newbold said: “Over the past four years Stuart and his team have built a truly formidable business – one underpinned by the quality of its product, service and proposition. While quality is vital for any business operating in the care sector, this unwavering focus, combined with astute management, has helped Prism to deliver strong and sustainable growth. It’s been a pleasure to support Stuart and his team and we wish them every success on the next phase of their growth journey.”

Prism Medial UK and the shareholders were advised by Clearwater International and Gateley, with EY Parthenon, KPMG and JLT Speciality providing due diligence support. Management were advised by Cattaneo Corporate Finance and Freeths.

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