LDC completes £30m deal in support of mobility products manufacturer
MID-market private equity firm LDC in Birmingham has completed a significant investment deal in support of the £30m acquisition of Prism UK Medical from Toronto-based TSX Venture Exchange listed business Prism Medical.
Prism, which has operations in Wigan, Wakefield and Rhyl, is the market leader in the manufacture of specialist mobility equipment designed to support disabled people living at home. Products include items such as hoists, shower chairs and stair lifts.
The deal was led by LDC’s Birmingham-based investment director Andy Lyndon, supported by Matt Newbold. Both will join the Prism board as non-executive directors with immediate effect.
The transaction was completed with support from a number of Midlands-based advisors and funders, including Deloitte, which provided financial due diligence, and Gateley, which acted as legal adviser to LDC. The vendor was advised by Clearwater Corporate Finance and SGH Martineau, and management were advised by Cattaneo. Banking facilities were provided by HSBC in Birmingham which provided a package of senior debt plus growth cap-ex facilities to support the acquisition.
In addition to its manufacturing operations, Prism also has a network of service centres spanning the UK and employs around 300 people. It also has significant business in the long-term care and acute care areas.
Prism manufactures and supplies products under a number of market leading brands in addition to offering a range of complementary services including assessment, installation, training, maintenance and after sale customer service.
The deal with LDC includes additional funding to support growth, mainly through organic expansion and strategic acquisitions. Initially, Prism will focus on the development and expansion of Prism’s existing product and service offering within the UK market, expansion into key European markets and target a number of acquisition opportunities.
Commenting on the investment, Martin Draper, chief investment officer at LDC said: “In Prism we are partnering with a high quality management team led by Stuart Meldrum and a business operating in an attractive market driven by strong fundamentals, including an ageing population and the need to deliver health care more effectively in the community. The management team has successfully implemented a strategic plan to capitalise on the market opportunity going forward and we will work closely with them to accelerate the business’ expansion strategy.
“As part of the transaction, the team will be further supported by the appointment of Alan Pilgrim as non-executive chairman and James Buckley as non-executive director. Previously CEO of Alliance Medical and chairman of Cancer Partners UK, Mr Pilgrim has a successful track record of working in the UK and international healthcare sector, while Mr Buckley was previously CEO of Tunstall Group and brings substantial M&A experience in this sector.”
