Dunedin unlocks £90m Kee Safety deal

Alice Murray
04 December 2013

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UK mid-market firm Dunedin has backed the ТЃ90m management buyout of Kee Safety, buying its stake from LDC.

The investment came from Dunedin's recently closed fund, which surpassed its £250m target and closed on £300m in July this year.

The deal saw Dunedin investing £32m into the company to support its continued international expansion. According to the firm, tighter rules around safety is boosting demand around the world for protective equipment. And the need for improved hazard prevention equipment is clear – according to construction union UCATT, the number of construction-related deaths in Yorkshire doubled in 2012-13 compared with the previous year. The most common cause of construction death is falling from height.

Debt
Senior debt and a revolving credit facility were supplied by the acquisition finance teams at Lloyds Bank Commercial Banking and HSBC Leveraged Finance.

Previous investment
Kee Safety has a long history of private equity investment, having first been backed by Barclays Ventures in June 2006. According to unquote" data, the first management buyout was valued at £26m.

In February 2011, LDC's Midlands team backed the secondary management buyout of Kee Safety, enabling Barclays Ventures to partially exit its holding in the company.

Company
Kee Safety was established in 1934 – it was formed when the first Kee Klamp barrier system was designed for making cows' milking stalls. A Kee Klamp is a structural pipe fitting typically used in constructing handrails and barriers.

Today, the company supplies tubular fittings and fall protection systems, all focused on hazard prevention. Products include rooftop guard rails, lanyards and ropegrabs as well as workwear and accessories.

Kee Safety employs 274 people and is present in more than 50 countries. The company reported revenues of £35m in 2012. Kee Safety is headquartered in Birmingham and operates sales and distribution offices in the UK, Germany, the US and Dubai. It has further sales offices in Canada, China, France and Poland.

People
Dunedin partner Nicol Fraser joined the company's board. Chris Milburn is CEO of Kee Safety.

LDC's chief investment officer Martin Draper led the initial investment into the company alongside director Andy Lydon, and both took seats on the board throughout the holding period.

Advisers
Equity – PwC (Commercial due diligence); Grant Thornton (Financial due diligence); Gateley (Legal).