THE DEAL:
Secondary buy-out of Prism Medical UK, specialists in moving, handling and bathing equipment for elderly, disabled and mobility disadvantaged clients, by the management team led by CEO, Stuart Meldrum, from LDC and funded by Limerston Capital. Prism 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. Since the original MBO in 2014, turnover has grown by 54 per cent to £40 million with the business now employing 450 people.
OUR ROLE:
Having originally advised on the MBO backed by LDC in 2014 we again advised the management team, led by CEO Stuart Meldrum, on their partial exit and rollover as part of the secondary buy-out. This included reviewing the exit proceeds including ratchet that the management would receive and their rollover amounts in to the new investment vehicle backed by Limerston Capital. We modelled proposed funding structures to assess the relative equity returns and considered how they compared to market norms. We advised management on the negotiations with Limerston, including on the terms and quantum of their investment, acting as a buffer as and when necessary on the negotiations along with providing a sounding board throughout the process. Our role also involved us working closely with the management team’s legal and tax advisers who we introduced.
WHAT OUR CLIENT SAID:
“Having been advised by Cattaneo when we did the original buy out in 2014 we knew what we were going to get from them but nonetheless they again brought their experience and commerciality to this deal along with the dedication to get the transaction completed in a tight timescale.”
Stuart Meldrum, CEO, Prism Medical UK
