YFM exit Mangar Health generating a 2.7x return

14 December 2018

Another successful exit as YFM Equity Partners sells Mangar Health

YFM Equity Partners (“YFM”) has sold is stake in Mangar Health Limited for an undisclosed sum to Winncare Group Ltd’ a leading French medical device company, delivering a 2.7x return to investors.

Mangar Health designs, manufactures and supplies inflatable bathing and lifting devices, which protect carers from injury and promote independence for people with limited mobility. With a global reach into America, Canada and Australia, Mangar Health also offers a wide international distribution network and additional opportunities in healthcare markets such as emergency services.  The Company is led by CEO Simon Claridge and his team of Finance and Operations Director Craig Butcher, Commercial Director Andrew Macphail and Marketing Director Clare Birt.

YFM has been supporting the transformational growth of UK SMEs for over 35 years.  Mangar Health was backed by British Smaller Companies VCT plc and British Smaller Companies VCT2 plc, both advised by YFM, in a management buyout in 2014.  Over the period of YFM’s investment, employment has grown by almost 50% to more than 70 staff.  Today’s acquisition by Winncare Group provides a full exit for YFM’s funds and delivers a 2.7x return on investment (a 22% IRR).

Simon Claridge, CEO of Mangar Health, commented: “Mangar Health has expanded significantly since the YFM investment.  We appreciate their practical advice, strategic guidance and support in helping us fuel our continued growth over the past five years.  They have been terrific partners and played an important role in helping us achieve our success.”

Commenting on the realisation, Ian Waterfield, Partner at YFM stated: “This is another example of YFM identifying and backing a niche business with significant growth potential.  We have really enjoyed working with the Mangar Health management team, alongside chairman James Buckley, and we are sure that they will deliver further growth as part of the Winncare Group”.

For YFM, this success follows the recent sale of Indigo Telecom (a 4.2x return for investors).

YFM and the management team were advised by Christian Mayo, Stephen Leah and Joe Bainborough at KPMG and Pete Wood, Carly Gulliver and Caera Loughran at Addleshaw Goddard.

Christian Mayo, Head of Corporate Finance at KPMG in Yorkshire, said: “Mangar is a fantastic business that has really carved out a unique and enviable position in the healthcare products sector. The firm’s portfolio and international growth plans, coupled with the support of leading international operator Winncare, will provide a strong platform for expansion. The deal demonstrates the continued appetite from foreign buyers for quality UK businesses.”

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