Seneca sells majority stake in Lancashire healthcare business
Burnley-based WSR Medical Solutions Limited – a specialist manufacturer and distributor of x-ray protective equipment for use in radiology environments – has been sold via a management buyout led by managing director and existing shareholder, Paul Dixon.
In 2015, Haydock-based Seneca Partners co-invested with Paul to acquire the business and provide growth capital of the then Rossendale-based business.
Over the course of four years the investment allowed the business to develop its products and expand its presence across the UK and internationally, while creating jobs and vastly improving efficiencies.
As part of this development the business, trading as Rothband, relocated to a modern production facility in Burnley which future-proofs the ongoing expansion and job creation.
The investment has generated a healthy return of around 2.4x net return for Seneca investors.
Paul Dixon said: “We have enjoyed working with Seneca and value their support across the past four years – it was always my ambition to lead Rothband forward and now is the perfect time to take sole ownership and drive the next phase of growth.”
Tim Murphy, director at Seneca Partners, said: “Paul has been an ideal partner – he has worked hard with his team to develop the business and we are delighted to be able to sell our shareholding to him whilst achieving a solid exit for our investors.
“This is particularly pleasing in such a turbulent market when exits for institutional investors are thin on the ground.
“Using growth capital to transform the business and then achieve a management buyout with Paul, we see as a great success story.”
The buy-out was backed by a £630,000 loan from Mercia’s SME Loans fund.
Peter Rooney, of Mercia, said: “Having worked with Paul over the last five years, we are very impressed by his achievements.
“Rothband is a real Lancashire success story – with its roots dating back to around 1860, it is now one of the leaders in its field.
“We are pleased to be supporting this deal which allows Paul to take full control of the business and lead it to the next stage of its development.”
Legal advice on the transaction was provided by Richard Robinson at Napthens and Seneca Partners was advised on the sale by Kourosh Mehrabani at K M Business Advisory.
