Investcorp, LDC exit Kee Safety

Investcorp acquired a majority stake in Kee Safety in October 2017, while LDC has backed the business since 2011.

The company has made 27 add-ons in total during LDC's investment period, eight of which have been completed since January 2020, according to statements from both vendors. The company has also expanded its geographical presence, particularly in the US, the Middle East and Asia.

In November 2020, Unquote sister publication Mergermarket reported that Investcorp was exploring options for its stake in Kee Safety. The report said that the company was likely to be marketed based on EBITDA of £35m and could generate a multiple of 13x.

Previous funding
Barclays Venture backed the MBO of Kee Safety in June 2006 in a deal that valued the company at £26m.

In February 2011, LDC acquired Kee Safety in an SBO from Barclays. The exit was valued at £53.5m, according to Unquote Data, and the deal was supported by senior debt from Lloyds.

In December 2013, Dunedin acquired a majority stake in Kee Systems in a £90m deal. At the time, the company generated revenues of £35m. HSBC and Lloyds provided debt to back the buyout.

Investcorp acquired a majority stake in Kee in October 2017, generating returns of 3x money and 35% IRR for Dunedin. LDC retained a stake as part of the transaction. The deal valued the company at £280m and was backed by a £112m debt package from Lloyds, HSBC, SMBC, Mediterranean Bank and Allied Irish Bank, as well as a £5m revolving credit facility. Kee Safety posted revenues of £78m at the time of Investcorp's investment.

In January 2019, Investcorp transferred six assets including Kee Safety to a new vehicle, Investcorp European Buyout Fund 2019, in a $1bn secondaries deal backed by Coller Capital.

Company
Founded in 1934 and headquartered in Cradley Heath, Kee Safety provides products and systems designed to ensure the safety of people working at height, such as barriers and guardrails, as well as fall prevention equipment. Kee Safety employs 780 staff in 10 countries, including China and the US. The company generates more than £100m in revenues, an increase of more than 350% since 2011, according to a statement from LDC.

People
Kee Safety – Chris Milburn (chairman).
Investcorp – Jose Pfeifer (managing director).
LDC – Matt Newbold (investment director).

Advisers
Management, equity – DC Advisory (corporate finance); PwC (commercial due diligence); Grant Thornton (tax); Dickson Minto (legal); Thinking Legal (legal).
Vendor – Gateley (legal).

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