WestBridge exits AJM Healthcare to Livingbridge

Unquote sister publication Mergermarket reported in February 2021 that AJM was being prepared for an auction process, with the company expected to be marketed based on EBITDA in the GBP 5m-10m range.

WestBridge acquired AJM in an SBO in September 2018, investing via WestBridge SME Fund II, which held a final close in June 2019 on GBP 140m. The fund makes equity investments of GBP 10m-20m in UK-based SMEs valued in the GBP 15m-40m range, according to Unquote Data. AJM is the first exit from the fund.

Kempen Capital Management invested in the deal alongside WestBridge, according to Unquote Data, deploying equity via its Private Markets Fund.

During the investment period, Andy Dunn joined AJM as chairman, while WestBridge's Tim Whittard joined the company's board of directors. In addition, the GP assisted the company with operational improvements, as well as investing in IT systems and the company's head office.

WestBridge also introduced ESG initiatives to the company during the investment period. These included the introduction of new electric vehicles, with the aim of having a fully electric fleet over the next three years.

WestBridge registered its third fund in September 2020, according to Unquote Data.

Livingbridge is investing via its Enterprise 3 fund, which generally invests in UK-based SMEs with enterprise values of up to GBP 50m. The vehicle held a final cloe in October 2019 on GBP 334m.

Livingbridge said in a statement that it intends to support the company's growth, allowing it to provide its services to more wheelchair users.

Company
Founded in 1983 and headquartered in Hailsham, AJM provides wheelchair and mobility services to the NHS, local authorities and private customers in the UK. The company employs 250 staff, versus 150 at the time of WestBridge's investment.

AJM generated revenues of GBP 10m at the time of WestBridge's investment in 2018. According to its latest publicly available accounts, the company generated turnover of GBP 21.8m and operating profit of GBP 1.7m in the financial year to April 2020, compared with turnover of GBP 9.3m and operating profit of GBP 195,345 in the nine-month period to April 2019.

People
WestBridge – Tim Whittard (partner).
AJM Healthcare – Steve Peck (managing director).
Livingbridge – James Titmuss (partner).

Advisers
Vendor – Lincoln International (corporate finance); Capital Law (legal).

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• Topics
• Buyouts
• Exits
• UK / Ireland
• Healthcare
• Secondary buyout
• United Kingdom
• WestBridge Fund Managers
• Livingbridge