LDC exits in £85m sale of specialist
Technology group Halma has bought pipeline inspection equipment specialist Mini-Cam in a deal which values the Warrington-based company at £85m and results in an exit for private equity firm LDC.
Stock market-listed Hamla has paid £62m upfront, with a maximum of a further £23.1m to be paid based on profit growth up to March 2020. The acquisition will push Hamla’s annual revenues above £1bn.
Mini-Cam, founded in 1991 by managing director Nigel Wilson, designs, manufactures and distributes hi-tech pipeline inspection systems.
Its crawler and push camera systems are used by water and wastewater companies and their contractors to record and transmit footage during inspections.
Wilson said: “Moving forward with the Halma group will ensure we’re well-placed to continue providing high-quality products to an expanding international customer base, as well as giving our employees further opportunities as part of a major international group.”
LDC backed the management buyout of Mini-Cam in July 2015, providing additional funding to accelerate the firm’s international growth strategy.
Since then Mini-Cam has expanded operations from one site to three, which includes establishing a European R&D facility in Austria, developing and launching multiple products and growing headcount by one-third to more than 50.
It has entered new overseas markets, including Australia, Scandinavia and the US, and international sales now account for more than 42% of turnover. The business exports to customers in more than 40 countries worldwide.
Mini-Cam will continue to operate under its current brand, with the management team remaining with the business.
It joins Halma’s portfolio of more than 50 specialist engineering businesses, which employ more than 5,800 people and serves customers in 160-plus countries.
Andrew Williams, Halma’s chief executive, described Mini-Cam as “a great fit” for his business.
“It is meeting the growing need from utilities for monitoring sewage and waste water networks, as aging infrastructure and increasing amounts of waste result in customer service challenges and potential non-compliance with environmental regulations,” he said.
The transaction was led by investment director Chris Wright and head of LDC in the North West Jonathan Bell.
Wright said: “Since we backed Mini-Cam just over two years ago, Nigel and his team have invested heavily in research and development and Mini-Cam is now one of the few UK-based pipeline inspection manufacturers that has successfully penetrated international markets.
“As part of the Halma group, the business will be able to build on these solid foundations and is strategically positioned to embark on the next phase of its international growth strategy.”
It is the fourth transaction this year for LDC’s North West team, following its multi-million-pound investment in ChargePoint Technology and its backing of management buyouts at Hill Biscuits and Fishawack.
LDC was advised by Clearwater International (David Weavers) and DWF (Frank Shephard).
Deloitte provided vendor due diligence to Mini-Cam, with the team including Jodi Birkett, Andrew Ward and David O’Leary.
