LDC exits Prism Medical UK

  • Revenues increase more than 50 per cent during LDC’s tenure
  • Buy and build strategy, increased international demand and new product development drive growth

Leading mid-market private equity investor LDC has completed the sale of Prism Medical UK (“Prism”), a manufacturer and provider of specialist healthcare equipment, to Limerston Capital for an undisclosed sum.

Headquartered in Wakefield, Prism specialises in moving, handling and bathing equipment for elderly, disabled and mobility disadvantaged clients. It supports customers in a range of care environments, such as schools, hospitals and care homes, and provides a full-service that includes the design, installation and servicing of its equipment across the homecare, long-term and acute care markets.

LDC first backed the management buyout of Prism in April 2014 to help drive growth at home and overseas. Over the past four years, and in partnership with CEO Stuart Meldrum and his management team, LDC has helped the business to accelerate its buy and build strategy, increase exports and invest heavily in new product development.

This has included the acquisition of four complementary businesses – HME, Smirthwaite, Mackworth and TMEC – which together have strengthened Prism’s presence in the mobility and patient handling markets.

Over the same period, Prism has also built a diversified portfolio of more than 180 products – launching an average of five new products a year – and expanded overseas to new markets including Australia and China. International sales now account for 10 per cent of turnover.

Today, the business employs 450 people and for the financial year ending November 2018 it recorded revenues of £40million, up 54 per cent during LDC’s tenure.

Stuart Meldrum, CEO 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.”

“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.”

The sale was led by Investment Director Matt Newbold and Head of South West and Wales Andy Lyndon.

Matt Newbold, Investment Director at LDC in Birmingham, added: “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.”

 Prism Medial UK and the shareholders were advised by Clearwater International and Gateley PLC, with EY Parthenon, KPMG and JLT Speciality providing due diligence support. Management were advised by Cattaneo Corporate Finance and Freeths.

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.