£65m management buyout for alarm security specialists

Halma, the global group of life-saving technology companies has sold its alarm manufacturing business, Texecom, to its management team for £65m.

The sale of the Rossendale-headquartered provider of electronic security systems was on a cash and debt free basis and was backed by private equity firm, LDC.

Texecom’s management team will continue to lead the business, which will operate out of its current locations.

Texecom was acquired by Halma in November 2005 for £26m. Since then revenues have grown from £19.2m to £33.3m.

LDC’s significant investment will support Texecom’s existing management team, led by managing director Jim Ludwig, “to build on its market-leading position and international presence through developing new products, enhancing its digital services and exploring complementary acquisitions.”

The investment was led by LDC’s head of Yorkshire Dan Smith and investment directors Will Scales and Leigh Daveran.

As part of the transaction, Dan and Will join Texecom’s board as non-executive directors.

Jim Ludwig, Texecom managing director, said: “Our customers’ electronic security needs are becoming more complex than ever.

“By prioritising innovation, both organically and through acquisitions, we will continue to provide market-leading products and services to our clients so that they feel safe and can get on with their day-to-day lives.

“We’re thrilled to have an investor that is as excited about our business, and the customers we serve, as we are.

“Our new partnership with LDC gives us the support and financial firepower to build on our legacy and achieve our ambitions. With the team’s help, we will continue to grow market share in the UK and in key overseas markets.”

Dan Smith, head of Yorkshire at LDC, added: “Texecom’s international footing and its reputation for quality, innovation and technical capability means the business is perfectly positioned to take advantage of the evolving global security market. We’re excited to support Jim and his ambitious management team to realise Texecom’s future potential.”

The sale comes as Halma completed three acquisitions for £48.8m having bought Ramtech, Dancutter and Sensitron as they seek to grow their businesses over the long term.

Andrew Williams, Group CEO at Halma, said: “It is also pleasing to have found a new home for Texecom, so that it can continue to invest and grow under the existing management team, who have served Halma well over many years.

“We wish them and the whole Texecom workforce every success for the future under their new ownership.”