Privately owned pressure care and moving and handling manufacturer, Herida Healthcare has completed its first acquisitions with Select Medical Ltd & Select Medical Holdings Ltd.
The deal was completed yesterday in what is deemed the first in a series of expected acquisitions over the next five years. Blackburn based Select Medical manufacture, supply, clean, and repair a wide range of pressure-relieving mattresses and cushions from their Blackburn site. The new group will boast joint revenues of £17m and strong double-digit EBITDA for the current period ending March 2021.
Sean Spencer, Managing Director of Herida Healthcare, says the acquisition will bolster the service and repair requirements for Herida’s rapidly growing business:
“Select has been a target of Herida for some time due to its well-respected product offering, service capabilities and respected brands. The 20-year-old business has built a very stable platform, and the incredible synergies between the two businesses will offer a wider product range and value for money to our much-valued customers on both sides. In summary, it’s business as usual for both sides, and as such, we can provide re-assurances to all existing customers that not much will change in terms of their lines of communication and customer service offering.”
David Elstone will remain as Managing Director at Select, working with Sean Spencer to capitalise on the synergy of two highly experienced teams and growing the business via extended manufacturing facilities from the Herida site in Leeds, West Yorkshire.
David commented, “We are, of course, delighted with the partnership. It is a great fit, and when Herida first approached us with the proposition, we were immediately excited to become a stronger unit in parallel. Unfortunately, the activities of COVID-19 delayed this project, but we are all now focused on the task in hand and will be knuckling down in the coming weeks and months so that we can offer the enhanced product and service offering across the group”.
Exiting owner and founder Ray Booth said of his time at the business and the transaction.
“Over 20 years, we’ve built an excellent business here at Select Medical. Fantastic people come to work committed to our cause and continually advancing it. There’s a strong culture and high performance amongst the team.”
Herida Healthcare continues to grow at a tremendous pace. In a competitive market, the speed at which they’ve progressed is to be applauded. There is a wealth of manufacturing and market expertise amongst its people. Adding an unrivalled surfaces portfolio and comprehensive service support to the Herida Group creates a formidable offering.
This acquisition is a big plus for our staff and customers, who will benefit from being part of a larger group with a wider portfolio. The deal ensures a continuation and commitment to C3, with a collective objective for becoming even better at what we do.
It is a proud moment, and we wish everyone every success for the future.
Herida Group Chairman, Neil Smith, closed the statement with: “Whilst of course we take delight in bringing Select Medical into the Herida family, I’d like to thank founders Ray and Emma Booth for facilitating the sale with both management teams and wish them well on their next ventures, outside of the industry. It’s now time for us all to realise the benefits across the group, whilst we leave one eye on the next target”.
Corporate Director Matthew Sutton and Siobhan Rantanen from Cardiff based Greenaway Scott acted for Herida on the legal advice and Corporate Finance Partner Steven Hubbard from RSM and Quantuma for the financial and tax due diligence aspects.
PM+M and Chantry Corporate Finance provided financial and tax advice to Select Medical, while Farleys handled legal advice.