Prism Medical has been sold by private equity firm, LDC, to another investment company, Limerston Capital, for an undisclosed amount.
The company manufactures a range of moving, handling and bathing equipment which it sells through dealer channels in the UK and internationally.
Prism was backed by LDC in 2014 when the manufacturer completed a management buy-out and over the last four years LDC has attempted to accelerate Prism’s buy and build strategy, increase exports and invest in new product development.
During LDC’s ownership Prism has increased turnover by nearly 50% to just under £40m.
Prism has failed to turn a profit during its period of purchasing and investment, with operating losses increasing from £1m in 2014 to a near £5m loss in 2016 and a £2m loss for the year ended November 2017.
Prism has acquired four businesses during LDC’s tenure, including HME, Smirthwaite, Mackworth and TMEC.
Since 2014 Prism has also expanded its portfolio to include more than 180 products, launching on average five new items each year. The company has expanded to international markets like Australia and China and overseas sales now make up around 10% of company turnover.
Stuart Meldrum, chief executive of Prism Medical UK, said its partnership with LDC provided the “financial firepower and strategic guidance” it needed to kick-start an acquisitive growth strategy.
“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.”
Meldrum said that the company is continuing to look at opportunities to build on its product and geographic coverage in the UK and internationally.
The sale was led by LDC’s investment director, Matt Newbold, and head of South West and Wales, Andy Lyndon.
Newbold 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.
“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.”
Image credit: Prism Medical