BREAKING: Prism Medical sold as it reports revenues of £40million
After supporting moving, handling and bathing manufacturer Prism Medical UK’s management buy-out (MBO) in April 2014 and helping drive the company’s growth and acquisition strategy, investment company LDC has sold Prism Medical to Limerston Capital, who will now look to support further Prism acquisitions.
The £40million Hinckley-based manufacturer, assessor, installer and servicer of hoists, slings, stairlifts, shower chairs, bed management systems and more has accelerated its buy and build strategy over the past four years, increasing both exports and new product development, as well as working with more Local Authorities, NHS Trusts and Care Home Groups.
Following the investment by LDC, Prism Medical UK went on the acquisition hunt, buying HME in September 2014, The Mobility Equipment Company in December 2014, Mackworth Healthcare in June 2015 and Smirthwaite in August 2015.
Alongside Prism Medical UK’s acquisitions, the company has built its product portfolio to more than 180 products and expanded its export activity, entering new markets including China and Australia.
Commenting on the sale, Stuart Meldrum, Chief Executive Officer of Prism Medical UK, 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.”
Today, Prism Medical UK boasts three UK manufacturing facilities, employs 450 people and for the financial year ending November 2018, recorded revenues of £40million – up 54% during LDC’s tenure – with 10 percent of turnover attributed to international sales.
“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,” added Stuart.
Mid-market private equity investor LDC sold the company to fellow investment company Limerston Capital, whose Founding Partner, Joao Rosa, says has been interested in entering the market for some time.
Joao commented: “We have been following the sector for some years and identified Prism as a particularly interesting investment opportunity. We are excited to be working with Stuart and his team who have demonstrated their ability to produce success with Prism’s highly skilled employees delivering top quality products and customer service. Limerston is looking to support the management team’s ambitious plans for growth both organic and through acquisitions.”
Matt Newbold, Investment Director of LDC who helped lead the sale, commented: “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. 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.”
Having strengthened its position in the mobility and patient handling market and grown substantially, Stuart told THIIS back in May 2018’s More About… feature that the company had worked hard to carefully manage its rapid growth whilst meeting rising expectations.
“I would say that, compared to ten years ago, we are clearly a bigger company but we have worked hard on being more professional at what we do and have managed to develop our processes and systems year-on-year to improve our service offering,” he said.
“What we’ve found, and it is a general thing in society, is customers are becoming more and more demanding about the level of service they receive… and quite rightly so.”
The news of the sale follows a string of recent acquisitions in the industry over November and December, with moving, handling and bathing manufacturer Mangar sold to Winncare, Harvest Healthcare’s MBO and Direct Healthcare Group’s acquisition of Poshchair Medical.