FRP manage private equity sale for market leader

Background

Headquartered in Wiltshire, Hilditch Group is the UK’s leading specialist in the management, auction, recycling and disposal of used medical equipment. The business was founded in 1990 by Mike and Nicky Hilditch who, over 30 years, built strong relationships with more than 90 per cent of NHS Hospital Trusts in the UK. More recently the Group has established itself in Germany, France and Spain. The founders wanted to sell a majority stake in the business, growing the value of the company while retaining a minority stake.

Action

FRP was appointed by the shareholders to help sell the business. Our Corporate Finance team managed the entire sale process – from preparation of the information memorandum, identification of potential investors, and solicitation of offers from a pool of potential buyers, to negotiation of the final deal with the private equity investors.

Outcome

We were able to agree a valuation for the business that met the shareholder expectations. Additionally, through detailed analysis and understanding of the company’s working capital profile, we agreed an additional significant payment from the buyer in respect of surplus cash in the business at completion. The result was a deal that not only realised value for the founders but also supported the business’ future growth – a key driver in the shareholders going ahead with the deal. The business now has the financial backing it needs to continue to invest, and the management team can embark on the next phase of their growth strategy.

“Deciding to sell a stake in a business that you have built up over 30 years is a very difficult decision to make. However, Mark and Alex from FRP have eased us through the process… they have done a terrific job and my business partner and I would heartily recommend them.” Mike Hilditch, founder of Hilditch