Blatchford backer CBPE mandates Investec to oversee imminent exit

Josh O'Neill and Rachel Lewis
03 August 2023

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Blatchfordтs private equity owner CBPE has appointed Investec to run an auction of the UK-based prosthetics manufacturer, which is slated to launch in September, four sources familiar with the situation said.

The asset is expected to be marketed to sponsors off FY23 adjusted EBITDA in the region of GBP 23m, according to the first two sources.

In the year ended 31 March 2022, Blatchford booked adjusted EBITDA of GBP 16.1m against revenue of GBP 95.5m – up 36% and 19%, respectively, year-on-year – according to its most recent filings with Companies House. While "the focus of [its] commercial strengthening during FY22 was in the USA, during FY23, European markets will also be a key focus for the group", Blatchford stated in its 2022 annual report.

Meanwhile, CBPE has retained Marlborough Partners as lead debt advisor, the first source noted.

CBPE began weighing its options for Blatchford last July, when the sponsor was reported to have been contemplating an IPO alongside a 2023 exit.

CBPE acquired Blatchford in late 2018 in a primary buyout from its founding family. The leveraged buyout was supported by a term loan B provided by a bank club.

Blatchford manufactures high-end lower-limb prosthetics. Its devices contain microprocessors that translate information back into the prosthetic while in use, meaning it can shift to assist with uneven surfaces. Some 15%-20% of prosthetics distributed in the US now contain microprocessing technology.

Comparables to Blatchford include Ottobock, which itself had been exploring a EUR 5bn IPO but later described a listing as "not desirable" amid current market conditions, and Össur, which is listed with a market cap of DKK 12.4bn (EUR 1.6bn).

CBPE and Investec declined to comment. Marlborough Partners did not return a request for comment.