Minivator

Deal Summary

Catalyst advised on the sale of Minivator to Norwegian based Handicare AS.

Based in the Midlands, Minivator is one of the world’s leading manufacturers of stairlifts selling to over 35 countries. In 2004, Chief Executive, Mike Lord, led a management buy-out of Minivator backed by Gresham Private Equity. Following the buy-out the company grew substantially as a result of the significant investment by the management team into research and development. This strategy has been highly successful resulting in an increase of over 75% in employee numbers bringing the current workforce to more than 400.

Handicare, owned by Herkules Private Equity, is one of the leading health companies in Europe and has operations in technical aids like wheelchairs and homecare products in addition to adaption of cars for elderly and physically disabled people.

What difference did we make?

Having advised on the management buy-out in 2004, Catalyst maintained a close working relationship with the management team of Minivator and reviewed the exit strategy and timetable on a regular basis.

Following a strategic review of the Business in September 2009, Catalyst advised the shareholders to commence preparations for the sale of the business with the objective of selling the business in early 2010.

As part of the strategic review, Handicare was identified as an acquirer with a strong commercial rationale to complete a deal in the short term. This was based on market intelligence that had been gathered as part of a confidential pre-screening process carried out by Catalyst as part of the strategic review. Therefore, in advance of a wider sales process, Catalyst immediately marketed the Business on an exclusive basis to Handicare whilst ensuring that confidentiality was maintained. In parallel with these discussions, preparations were completed to commence the sale of the business in early 2010 in the event that the sale of the business to Handicare was unsuccessful.

Based on our understanding of the objectives of the shareholders of Handicare and a detailed knowledge of the expected synergies between Minivator and Handicare, Catalyst successfully delivered a strategic price for the shareholders of Minivator that represented a double digit multiple on the historic profitability of the Business. This valuation was delivered without the need to share confidential information with other trade buyers.

The transaction was successfully completed within 3 months of the completion of the strategic review and within 6 weeks of signing Heads of Agreement with Handicare.