LDC sells stake in Prism Medical

LDC has exited a £40m turnover, four hundred and fifty employee manufacturer and provider of specialist healthcare equipment, selling its stake to private equity firm Limerston Capital.

Prism Medical UK specialises in moving, handling and bathing equipment for elderly, disabled and mobility disadvantaged clients. It supports customers in environments such as schools, hospitals and care homes, and provides a full service that includes the design, installation and servicing of its equipment across the homecare, long-term and acute care markets. The company has its headquarters in Wakefield and sites in Hinckley, Winchester, Wigan, Rhyl and Bridgend. It recorded revenues of £40m for the financial year ending November 2018, up 54% during LDC’s tenure.

LDC first backed the management buyout of Prism in April 2014, backing chief executive Stuart Meldrum and his management team, and enabling the business to accelerate its buy and build strategy, increase exports and invest heavily in new product development. The investment has also supported the acquisition of four complementary businesses; HME, Smirthwaite, Mackworth and TMEC.

Prism has built a portfolio of more than one hundred and eighty products, launching an average of five new products a year, and expanded overseas to new markets including Australia and China. International sales now account for 10% of turnover.

Insider Media reports Stuart Meldrum, chief executive of Prism Medical UK, said “Our partnership with LDC provided the financial firepower and strategic guidance we needed to kick-start an acquisitive growth strategy and the team’s support has been instrumental in helping us to achieve our ambitions. They have helped to guide a growth journey that has ultimately seen us expand across the UK, ramp up exports and enter new market segments – all of which means we can bring more of our market leading products to those who need it the most. The past four years have been a period of true transformation and we now have an even stronger platform on which to build as we enter the next stage of our journey with Limerston Capital.”

The sale was led for LDC by investment director Matt Newbold and head of South West and Wales Andy Lyndon.

Matt Newbold, investment director at LDC in Birmingham, said “Over the past four years Stuart and his team have built a truly formidable business – one underpinned by the quality of its product, service and proposition. While quality is vital for any business operating in the care sector, this unwavering focus, combined with astute management, has helped Prism to deliver strong and sustainable growth. It’s been a pleasure to support Stuart and his team and we wish them every success on the next phase of their growth journey.”

Prism Medial UK and the shareholders were advised by Clearwater International and Gateley, with EY Parthenon, KPMG and JLT Speciality providing due diligence support. Management were advised by Cattaneo Corporate Finance and Freeths.

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