£32m-turnover healthtech business goes out on a limb with MBO
A Leeds-based healthtech business, which specialises in prosthetic limbs for the NHS, is under new ownership following a management buy-out.
Steeper Group, whose manufacturing facilities were devastated by the Boxing Day floods, is being acquired by chief executive Paul Steeper and finance director John Midgley from private equity firm Dunedin.
It has been owned by the mid-market PE firm since 2005 and the company said its investment had been “vital” in enabling it to grow.
As part of the deal, the company’s bebionic division will be sold to German prosthetics company Ottobock.
A supplier to the NHS, Steeper designs and produces artificial limbs. Its Leeds manufacturing site was hit by flooding on the Boxing Day in 2015, and since then it has been focused on its recovery, currently in the process of relocating their existing Leeds site to a new, ‘centre of excellence’ in the area.
It was founded in the 1920s by Paul Steeper’s late grandfather, Hugh and was originally set up to provide prosthetic limbs to veterans of the First World War, and since then has expanded across prosthetics, orthotics and assistive technology.
For the year to February 2016, parent company Steeper Holdings reported £32.5m in turnover and pre-tax profits of £249,151 for the year.
Steeper finance director Midgley said: “For many years, Steeper has been owned by private equity firms, which enabled the company to grow to its current position in the market. We are delighted to be moving forward on a new journey from this strong base. Both Paul and I have been long-standing members of the executive board of directors, and are confident and excited about what the future holds.”
Steeper added: ‘We have enjoyed our time with Dunedin, and we are now looking forward to the future as we seek to further strengthen our existing positive relationships with customers, our distributors and our suppliers, and continuing to provide the best products and services to the industry’.
Nicholas Hoare from Dunedin said: “We invested in Steeper in 2005 to support its growth plans helping it to break into new markets including the US and launching new products such as the Bebionic hand. The sale to Ottobock is an excellent fit and we are confident that the business will continue to deliver on its growth ambitions.”
Christian Mayo and Ben Taylor of KPMG advised the shareholders of Steeper on the deal.
Christian Mayo, partner and head of corporate finance at KPMG in Yorkshire, said: “When it comes to the wider industry, medtech is an exciting, high-growth sector that is continually evolving – particularly in our region. As a result, we’re seeing a great deal of interest from both the investment community and trade buyers for this type of business and it’s an area we expect to see more activity in throughout the year ahead.”
