Dunedin sells Steeper's BeBionic to Ottobock

Kenny Wastell
03 February 2017

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Dunedin has sold the BeBionic division of UK-based prosthetics business Steeper to German trade buyer Ottobock, bringing to an end its 11-year holding period.

The sale marks a final exit for the GP's 2000-vintage Dunedin Buyout Fund, which held its final close on £75m in 2002 and has generated gross IR of 34%.

During the GP's tenure, changes in purchasing and funding constraints by the UK's National Health Service (NHS) meant Dunedin was required to move away from its initial strategy for Ottobock, which was reliant on the public body.

When the firm first invested, the company provided artificial limbs, specialist footwear, braces and supports and electronic devices to aid daily living. The company was repositioned to focus on international sales of its orthotics and prosthetics products. It subsequently expanded into the US market and invested in new product development.

According to a statement issued by Ottobock, the trade buyer will take over exclusive manufacturing of the BeBionic product in May 2017, following a brief transitional period.

Previous funding
Dunedin backed the management buyout of Steeper in December 2005 in a deal supported by a debt package from Barclays Bank. At the time, the firm invested £3-15m in businesses with enterprise value of £10-25m.

Company
Founded in 1921, Leeds-headquartered Steeper is a prosthetics, orthotics and assistive technology business. According to publicly available records, the company generated losses of £193,000 on ordinary activities before taxation in the year ending February 2016.

People
Dunedin – Shaun Middleton (managing partner); Nicholas Hoare (partner).