Safety products group acquired in £280m deal

A Black Country based safety products group has been acquired from its private equity-backed owners in a deal which values the business at £280m.

Kee Safety, based in Cradley Heath, produces devices to ensure the safety of workers on high platforms and roofs. It also produces fall protection solution and safety barrier systems.

The company has a global presence and sells its products across more than 60 countries to a broad range of customers, from multi-national corporations to distributors and installers. It employs 480 people and has established operations in 10 countries, including the US and China.

The business has been acquired from Dunedin and LDC by Investcorp, a leading provider and manager of alternative global investment products.

Investcorp plans to support Kee Safety’s international growth strategy both organically and by considering further add-on acquisitions, expanding the company’s geographic footprint and strengthening its presence in existing markets.

It said that operating in a highly fragmented market, Kee Safety was well positioned to benefit from leveraging its strong reputation for the reliability of its products and its scalable business model.

Increasing levels of safety regulation and enforcement around the world are expected to increase demand for its products to deliver above-market growth rates.

Jose Pfeifer, Principal in Investcorp’s European Corporate Investment group, said: “Kee Safety has grown at an impressive rate across international markets whilst maintaining excellent standards in the quality and reliability of its product range.

“We believe the company is well-positioned to solidify its leading position and gain a greater market share in a sizeable, growing and fragmented industry.”

Chris Milburn, chairman of Kee Safety, added: “International expansion and an active acquisition strategy have formed key tenets of our growth story over recent years. It was therefore extremely important for us to identify the right partner capable of continuing to support us in this period of strong development for the company.

“We believe that Investcorp’s proven track record, global presence and network will be extremely valuable in this regard.”

The sale, which is subject to completion, provides a full exit for Dunedin’s Buyout Fund III, which will make a return of three times money invested and an IRR of 35%.

Debt financing for the transaction has been provided by Lloyds Banking Group and HSBC.

Sell side advisers were Rothschild for corporate finance and Gateley for legal.

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