Limerston Capital snaps up £40m-turnover Wakefield manufacturer Prism
London investment firm Limerston Capital has acquired Yorkshire healthcare equipment manufacturer Prism Medical UK.
The deal marks an exit for mid-market private equity house LDC, which backed a management buyout of Prism in April 2014.
Since then, LDC has worked with Prism CEO Stuart Meldrum and his senior team to accelerate the firm’s buy-and-build strategy. They also focused on increasing exports and investing heavily in product development.
Prism acquired four businesses during the period – HME, Smirthwaite, Mackworth and TMEC, shoring up its presence in the patient-handling and mobility markets.
The Wakefield-headquartered company creates moving, handling and bathing equipment for elderly, disabled and mobility disadvantaged people. It supports customers in care environments such as hospitals, care homes and schools.
Prism employs 450 staff and recorded a turnover of £40m for the year to November 2018 – up 54% since securing LDC’s backing.
Stuart Meldrum, CEO of Prism, said: “Our partnership with LDC provided the financial firepower and strategic guidance we needed to kick-start an acquisitive growth strategy and the team’s support has been instrumental in helping us to achieve our ambitions.
“They have helped to guide a growth journey that has ultimately seen us expand across the UK, ramp up exports and enter new market segments – all of which means we can bring more of our market leading products to those who need it the most.”
He added: “The past four years have been a period of true transformation and we now have an even stronger platform on which to build as we enter the next stage of our journey with Limerston Capital.”
LDC investment director Matt Newbold led on the sale alongside head of South West and Wales Andy Lyndon.
Matt said: “Over the past four years Stuart and his team have built a truly formidable business – one underpinned by the quality of its product, service and proposition.
“While quality is vital for any business operating in the care sector, this unwavering focus, combined with astute management, has helped Prism to deliver strong and sustainable growth.”
He added: “It’s been a pleasure to support Stuart and his team and we wish them every success on the next phase of their growth journey.”
Clearwater International and Gateley PLC advised Prism Medical UK and the shareholders on the deal. Due diligence support was provided by EY Parthenon, KPMG and JLT Speciality. Management were advised by Freeths and Cattaneo Corporate Finance.
Clearwater International’s UK managing partner, Phil Burns, commented: “Having previously advised on the sale of the business to LDC in 2014, we had a deep knowledge of the business and a great working relationship with the management team.
“In Limerston, we have helped Prism find an excellent partner to continue to grow the business in the coming years.”