LDC backs buyout of healthcare firm

A private equity firm has backed the buyout of a company which improves the lives of people with mobility problems.

LDC has agreed to back the management team in the conditional buyout of NRS Healthcare, the healthcare division of retailer Findel, for a gross consideration of £24m.

The transaction is subject to shareholder approval and is expected to be completed by April 16.

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NRS, which employs 500 full time equivalent staff, is an outsourced provider of specialist community healthcare equipment and services to the NHS and local authorities.

The company’s products and services help people with mobility problems to live independently.

With the support of private equity firm LDC, the buyout will enable NRS Healthcare to drive its growth through product portfolio expansion and acquisitions. For the financial year ending March 30 2012, NRS Healthcare recorded annual revenues of £76.8m.

Leeds-based John Garner, the director and head of Yorkshire and the North East, and investment director Dale Alderson, led the deal for LDC.

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Mr Garner said: “The increase in residential and domiciliary care provision, which has been driven by an ageing population, the transfer of care from the public to private sector and rapid technological advancement, has supported strong growth in the community healthcare equipment industry.”

Mr Alderson added: “NRS Healthcare is a quality business with a well-respected management team, which we are keen to support and help deliver its organic and acquisitive growth ambitions.”

The Acquisition Finance team at Yorkshire Bank led by Mike Selina and Ruth Cherry has provided a package of senior debt, including a revolving credit facility, to support the buyout.

Catalyst is advising management, while legal advice is being provided to LDC by Pinsent Masons. The Manchester office of Rothschild is advising the vendor.