Findel sells health business for £24m
FINDEL, the North West home shopping and education supplies group is selling its healthcare division to private equity firm LDC for £24m.
The deal for NRS, originally known as Nottingham Rehab Supplies, which is based in Leicestershire, was first mooted late last year. The business has 500 staff and supplies equipment such as mobility scooters and bath lifts to the public and private sectors.
It also holds 13 Integrated Community Equipment Services (ICES) contracts with NHS trusts and local authorities. As at September 28 2012, it had gross assets of £25.1m and in the financial year ended March 30 2012 generated £76.8m of revenue and operating profit of £2.1m.
The deal is subject to shareholder approval and is expected to complete next month.
David Sugden, chairman of Findel, said: “NRS is a good business with a leading position and a range of growth opportunities, the pursuit of which is better undertaken under new ownership.
“We believe that the proposed disposal of NRS is in the best interests of the group and its shareholders. The disposal will enable Findel to better focus on the turnaround plans for the remainder of the group, and will also help to strengthen the balance sheet by reducing borrowings.”
The deal was led by LDC’s Leed office and financed by Yorkshire Bank in Birmingham.
Catalyst is advising management, whilst legal advice is being provided to LDC by Pinsent Masons. Bod Buckby at the Manchester office of Rothschild advised the vendor.
The Manchester office of Ernst & Young provided financial and tax due diligence to Findel. The team was led by Partner Richard Harding and included, James Walker, Noam Handler and Susan Wright.
In a trading update Findel said its turnaround plan was progressing with Express Gifts and sports goods business Kitbag performing particularly strongly.
