LDC’s Prism Medical bolts on Smirthwaite

LDC did not provide fresh equity for the transaction, which will grant Prism Medical a foothold in the paediatric equipment segment.

Following the deal, Smirthwaite's 65 employees remain at its Devon headquarters, with managing director Richard Snape staying at the helm of the company.

The add-on is the fourth undertaken by Prism Medical since being acquired by LDC in April 2014. According to the GP, the company's staff has grown by 130 to a total of 430 employees during its 16-month tenure. Including Smirthwaite, the group is now expected to generate £40m in turnover.

The GP, having recently announced a £1.2m investment scheme in the UK mid-market, stated additional bolt-ons for Prism will be considered.

The deal follows an active few weeks for LDC, after £23m was invested in support of an MBO for British fume extraction system manufacturer BOFA International in August.

The same month saw the GP secure a £18.5m refinancing for its portfolio business Specialist People Services and pick up a minority stake in IT software developer Centiq.

Previous funding
LDC became a shareholder in Prism Medical via a £30m MBO from previous owner TSX Venture Exchange in April 2014.

Featuring senior debt and growth capex facilities from HSBC, the deal was the fifth to be announced by LDC last year. At the time, the GP revealed it would support Prism's plans to grow via a buy-and-build strategy.

Four add-ons have taken place since that date. Notable deals include the acquisition, supported by LDC-injected capital, of UK-headquartered stair-lift specialist The Mobility Equipment Company in January 2015. 

Company
Smirthwaite was established in the late 1980s as a supplier of assistance equipment for children and young patients with special needs. Headquartered in Heathfield, the company currently employs 65 people.

Founded in the early 1980s, Prism Medical manufactures and sells equipment for the treatment of both long-term and acute conditions among mobility-impaired patients. Headquartered in Wakefield, the company has an existing research partnership with the University of Salford for the design of slings and other devices. With a workforce sitting at 430 after the last bolt-on, the business expects to generate £40m in revenues on a yearly basis.

People
LDC's work on the deal was coordinated by director Andy Lyndon. Stuart Meldrum is CEO at Prism Medical.

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