LDC exits Prism Medical UK in SBO

Alessia Argentieri
18 December 2018

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LDC, the private equity arm of Lloyds Banking Group, has sold Prism Medical UK, a manufacturer and provider of healthcare mobility equipment, to Limerston Capital.

The GP bought the company via its debut fund Limerston Capital Partners I, which held a final close in August 2017 on £220m, exceeding its £200m target. The vehicle invests in UK lower mid-market companies with EBITDA between £5-15m and potential for operational improvements.

Limerston plans to support the company's management in this new phase of expansion by boosting the business' growth both organically and through new add-on acquisitions.

The sale ends a four-year holding period for LDC, which acquired Prism from Toronto-based Prism Medical Limited in a £30m deal. The transaction also included additional funding alongside the initial investment to support the company's buy-and-build strategy. HSBC provided a senior debt package and growth capex facilities to support the acquisition.

Under LDC's ownership, Prism increased its revenues by 50% and accelerated its buy-and-build strategy with the acquisition of four complementary businesses: HME, Smirthwaite, Mackworth and TMEC. In addition, the company invested in new product development by building a diversified portfolio of 180 products and increased its exports by expanding its overseas operations into new markets, including Australia and China.

Company
Established in the early 1980s and headquartered in Wakefield, Prism manufactures and provides safe handling solutions for mobility-impaired people. The company offers a full-service that includes the design, installation and maintenance of its moving, lifting, handling and bathing equipment for elderly, disabled and mobility disadvantaged clients. Prism employs 450 staff and has two manufacturing facilities located in Rhyl and Wakefield and four additional UK-based service centres. The business generated revenues of £40m in the financial year ending in November 2018, 10% of which came from outside the UK.

People
Limerston Capital - Joao Rosa (founding partner).
LDC - Matt Newbold (investment director); Andy Lyndon (head of South West and Wales).
Prism Medical UK - Stuart Meldrum (CEO).

Advisers
Acquirer – PwC (financial due diligence); Linklaters (legal); GK Strategy (regulatory due diligence).
Vendors - Clearwater International (corporate finance); Gateley (legal); EY Parthenon (commercial due diligence); KPMG (); JLT Speciality (financial due diligence); Cattaneo (corporate finance); Freeths (legal).