22M MBO AT IDENTITY CARD COMPANY
Personal equity firm LDC has actually backed the management buyout (MBO) of a Dorset-headquartered manufacturer of protected desktop ID card printers from listed defense and security group Ultra Electronics in a 22m offer.
Magicard, based in Weymouth, makes direct-to-card and retransfer printers which are capable of printing and encoding all kinds of card format, consisting of magnetic stripe, distance cards and chip and pin cards utilized in the banking sector.
Its products are used to print staff determine cards for NHS England and to help protect worldwide tops, consisting of the G20.
The MBO was led by president Andy Matko. As part of the deal, senior members of the management group have gotten a minority shareholding, with LDC investing for a significant majority stake.
The deal is worth an initial 22m however added payments of up to 3m will be made subject to profits growth over the next two years.
Matko said: “This is exciting news for Magicard and our global network of devoted partners. This offer, together with the recent development of our Helix retransfer printer, gives the management group the chance to drive business forward as owners and unlock the capacity of the business, establishing new products and targeting brand-new locations.
” LDC’s investment includes the capital we have to accelerate our growth, along with a strategic partner who understands and supports our passions for the future.”
Magicard runs sales workplaces in the UK, US, Dubai and China. More than 70 percent of its 19.3 m revenues come from international markets, where it sells to more than 100 countries.
The offer was led by LDC investment directors Gordon Hague and Chris Neale who join the board, supported by investment executive Aylesh Patel. Chris Thomas has been designated non-executive chairman.
Hague stated: “Magicard is an innovative international business with a strong brand name that has effectively grown thanks to a commitment to brand-new product development and exceptional customer care.
” Its market-leading products are trusted by some of the world’s most security conscious organizations and with security continuing to be high up on the business and government program, need for high-integrity, economical solutions will continue to supply considerable growth opportunities throughout its crucial markets and geographies.”
The deal goes through US regulatory approvals.
LDC was recommended by Duff and Phelps, CIL, RSM and CMS Cameron McKenna. Ultra-Electronics Holdings was recommended by KPMG and Osborne Clarke while management were encouraged by Liberty Corporate Finance and Shoosmiths.