Medical manufacturer sells UK operations
A MEDICAL equipment manufacturer has sold its UK operations for £30m.
Prism Medical, headquartered in Toronto, Ontario, operates UK sites in Wakefield, Wigan, Wigan, Rhyl, Leicestershire and Hampshire. The group, which employs around 300 people in the UK, supplies moving, handling and bathing solutions to the social and care sectors to the UK healthcare market as well as to dealers throughout Europe and the Middle East. Products include items such as hoists, shower chairs and stair lifts.
It’s West Yorkshire-based Westholme Division operation in Grange Moor has been part of the group since 2002 and manufacturers slings.
The deal was backed by LDC, the private equity firm and Clearwater Corporate Finance advised Prism.
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.
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.”
Andy McIntyre, executive chairman and CEO of Prism Medical, said: “We are very pleased to have unlocked significant shareholder value as a result of this transaction. This allows us to focus on our growing North American business that in fiscal 2013 generated revenues in excess of C$35.3m and an Adjusted EBITDA in excess of C$6.4m exclusive of corporate administrative costs.
“As a result of the sale of the UK operations we expect to considerably reduce our administrative expenses and focus our human and financial capital on the growing North American market for our products and services. We believe this renewed focus in familiar and adjacent markets offers more attractive prospects than what we can achieve in the more mature European markets.”
