Maven Capital Partners completes £6.5 million MBO of Healthpoint Limited
Funding package will enable Healthpoint to drive growth through new product development and further penetrate grocery multiples, value retailers and export markets
Maven Capital Partners (“Maven”), one of the UK’s most active private equity houses, has completed a £6.5 million management buy-out of Healthpoint Limited (“Healthpoint”), which sources and supplies healthcare and beauty products into the retail sector. The equity investment was funded through Maven’s co-investment network for professional clients ‘Investor Partners’, with debt and working capital funding provided by Barclays plc.
The investment will enable Healthpoint to fund further new product development, with around 30 new product lines in the pipeline for launch in the next year, and support the business in driving organic growth from its long-established relationships. The company is also focused on a buy-and-build strategy with follow-on funding available from Maven to grow the company by acquisition.
Blackpool based Healthpoint has carved a successful niche within the rapidly expanding ‘value’ segment of the personal care and beauty market. Its portfolio of branded products, which include ‘Derma V10’ and ‘Clear & Simple’, offer an affordable, high quality alternative to the premium branded products. Healthpoint’s products also include a range of over the counter (“OTC”) medicines bearing the “Healthpoint” brand, with the OTC range set to expand significantly following the investment.
Founded in 1996, the business has grown to become one of the largest suppliers of tertiary branded healthcare products in the UK. In 2014 the business was sold to the current management team, led by Managing Director Amanda Parkinson, who implemented a focused commercial strategy leading to a number of industry awards and growth within the customer base. Healthpoint now supplies over 300 product lines to retailers, wholesalers, healthcare and pharmacy chains, as well as the export market.
Amanda Parkinson, Managing Director at Healthpoint, said: “We are passionate about delivering high quality products and excellent customer service to our growing customer base, and are delighted that Maven shares our vision for the business. We have plans to drive the value of our brands, increase the number of products across the whole product range, capture market share and also target overseas sales growth. ”
Ryan Bevington, Investment Director at Maven, added:“We are delighted to have completed the investment in Healthpoint, which is a leading player operating in a growing segment of the market. We look forward to working with Amanda and her team to help the business continue its impressive growth over recent years. Healthpoint is another example of a high-growth portfolio company which is bringing a large number of new products to market over the coming year and planning to target the export market which provides hugely exciting opportunities.“
Key advisors to the transaction were:
- Corporate Finance and tax advice provided by Paul Kaiser, Katy Lamb and Stephanie Davidson at UNW
- Legal advice to Maven by Paul Jefferson and Katie Porter at Gateley plc
- Commercial due diligence by RPL
- Insurance due diligence by Vista
- Financial due diligence by RSM
- Management due diligence by Stratton HR
- Legal advice for management provided by Schofield Sweeney