Gresham Private Equity, a UK mid market private equity specialist, has signed a deal to dispose of its investment in Minivator Group through the sale of the business to Handicare Group, a health company in Europe.
The deal, which is subject to regulatory approval, will yield Gresham a return on investment of 3.4 times.
Based in the Midlands, Minivator is a manufacturer of stairlifts selling to over 35 countries. Since the management buy-out in August 2004, the management team has invested heavily in the company’s research and development and turnover has doubled.
Over the past four years employee numbers have jumped by over 75 per cent to more than 400. The company currently has 16 apprentices in training, an initiative that was launched in 2006.
The partnership with Gresham has also allowed the company to expand its operations internationally. It has established operations in North America and Germany and has recently started its own manufacturing base in the Far East. Export sales grew by 60 per cent during 2009.
James Barbour-Smith, partner at Gresham who led the exit, says: “Minivator is an excellent business led by a first class management team. The business is a great example of how Gresham works with its portfolio companies to develop and grow the business. We are particularly pleased with the strong product innovation and international expansion of Minivator under our investment.”
Mike Lord, managing director of Minivator, adds: “Gresham has been a fantastic partner over the past five years and helped professionalise our business among other improvements. We are in an excellent position to continue our growth strategy through the sale of the business to Handicare.”
