Loan enables private equity acquisition of specialist manufacturer

A South Yorkshire manufacturer is being acquired by a London-based private equity firm.

SME finance provider OakNorth Bank has provided a loan to investment partnership Rubicon Partners so it can acquire CMD Limited, a power and connectivity manufacturer in Rotherham.

Founded in 1984, CMD employs 158 people and supplies products to integrate power and AV/data access for people working in offices and commercial spaces.

Its product range includes underfloor powertrack and power hub power distributions systems, floor boxes, workstation power and AV/data modules to monitor arms, CPU supports, and cable management solutions.

CMD’s existing management team, led by Jon Holding, will continue to lead the business and work alongside Rubicon to develop the business further.

Established in 1993, Rubicon Partners has invested in 78 UK and international companies valued between £15m-£250m to date.

It is currently invested in six companies, including CMD, via its Fund V and had previously invested in CMD during 2001-2008.

Stewart Haworth, debt finance director at OakNorth Bank, said: “CMD is a strong business that has demonstrated its resilience during previous economic downturns, including the 2008 financial crisis and the COVID-19 pandemic, remaining profitable throughout.

“While new construction is likely to decline in the next 12 months, demand for CMD’s products will remain through office renovation and refurbishments, driven in part by EPC rating enforcement and demand for hybrid working spaces.

“With over three decades of experience in the office power and furniture sectors., Jon Holding has been instrumental in growing the business into the market-leading company it is today.

“With the backing of a strong sponsor in Rubicon Partners once again, the business is well-equipped to meet future demand and continue its successful scaling strategy.”

OakNorth Bank was introduced to the transaction by FRP Advisory and received legal support from Squire Patton Boggs.