Gresham backs the buy-out of leading stairlift manufacturer Minivator

Gresham, the mid-market private equity firm, has backed the management buy-out of leading stairlift manufacturer Minivator. Minivator provides bespoke stairlift and access solution products to the disabled and less able population in the UK and overseas.

The company, based in Kingswinford in the West Midlands, is a holistic solutions provider for the installation of stairlifts in the home. Minivator designs, manufactures and installs each stairlift to the bespoke requirements of its customers. Minivator has invested heavily in extending its product range and customer service and the business now employs nearly 200 people. The business has demonstrated strong growth over the past three years with sales growing from £6 million to £20 million over the period.

Following the MBO, Mike Lord becomes managing director. Mike has extensive experience of the stairlifts industry having co-led the original purchase of Minivator from Sunrise Medical in 2000. The current chief executive, Barrie Payne, will act as a consultant for Minivator.

The stairlift market is estimated to be worth approximately £200 million per annum globally, with 45 per cent of sales taking place in the UK. The market is expected to continue to exhibit strong growth, fuelled by the ageing population demographics, increased customer acceptance of the product and growth in the availability and accessibility of government funding through the Disabled Facilities grant. Growth in the access solutions market, to which Minivator supplies a wide range of products, is forecast to accelerate when the Disability Discrimination Act comes into force in October of this year, requiring all public facilities to be equally accessible to all people.

The company has a number of contracts with local authorities to provide stairlifts to their respective regions as well as selling directly through a network of more than 250 dealers across the UK. Minivator also has international reach with operations in France, Italy, Germany, Japan, Australia and the USA, making it the second largest stairlift manufacturer in the UK market and number three in the world.

Paul Franks, investment director of Gresham's Birmingham office who led the MBO, said: "We are delighted to be investing in a high-quality and experienced management team running a business that is in a great position to exploit the considerable growth potential of the sector. Minivator will capitalise on its organic growth potential as well as making strategic acquisitions to consolidate its market position."

Mike Lord, the managing director of Minivator, said: "With Gresham's support, we are now in a position to reach our full potential. We have market-leading products and will continue to invest in both research and development to improve and expand our product range and customer service. This is an exciting time in the development of Minivator."

Senior debt and working capital was jointly provided by Andy Taylor of Lloyds TSB Corporate Acquisition Finance and Simon Woodcock of Lloyds TSB Commercial Finance. Gresham and the management team were advised by Andy Currie of Catalyst Corporate Finance, who led, structured and project managed the transaction. Jim Lavery of DLA provided legal advice to Gresham and Paul Bennett of George Green provided legal advice to the management team. Financial due diligence and tax structuring was carried out by KPMG Birmingham. Ian Ilersic of Wragge & Co provided legal advice to Lloyds TSB.