Gresham to achieve 3.4x money on exit of Minivator Group

Gresham Private Equity, the UK mid market private equity specialist, today announces that it has successfully signed a deal to dispose of its investment in Minivator Group through the sale of the business to Handicare Group, one of the leading health companies in Europe. The deal is subject to regulatory approval. The sale will yield Gresham a return on investment of 3.4 times.

Based in the Midlands, Minivator is one of the world’s leading manufacturers of stairlifts selling to over 35 countries. Since the management buy-out in August 2004, led by Paul Franks, a partner in Gresham’s Birmingham team, the management team headed by Mike Lord 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% 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 significantly its operations internationally. It has established operations in North America and Germany and has recently started its own manufacturing base in the Far East. Furthermore, export sales grew by 60% during 2009.

James Barbour-Smith, Partner at Gresham, who led the exit said: “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 comments: “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.”

The healthcare company Handicare AS, owned by Herkules Private Equity Fund 1, was founded in 1986 and has operations in technical aids like wheelchairs and home care products in addition to adaptation of cars for elderly and physically disabled people. Through its subsidiary Puls, the Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare has its headquarters in Moss, Norway, and has subsidiaries in Sweden, Denmark, Germany, the Netherlands, England, Belgium, Poland, USA and Canada, and distributes its own products to an additional 30 markets. Handicare has approximately 1000 employees and reached sales of 2.1 billion NOK in 2009.