Rothband completes management buyout
Burnley based medical firm Rothband has completed a management buyout, with investment firm Seneca Partners divesting its majority share.
The buyout of the x-ray and imaging specialist was backed by a £630,000 loan from Mercia’s SME Loans fund.
Seneca co-invested with managing director Paul Dixon in 2015 to acquire and provide growth capital for WSR Medical Solutions Ltd, which trades as Rothband and was then based in Rossendale.
The business has since developed its products and expanded its presence across the UK and internationally whilst creating jobs and vastly improving efficiencies.
The business relocated to a modern production facility in Burnley which futureproofs the ongoing expansion and job creation.
Paul Dixon said: “We have enjoyed working with Seneca and value their support across the past four years – it was always my ambition to lead Rothband forward and now is the perfect time to take sole ownership and drive the next phase of growth.”
The sale represents a 2.4x net return for Seneca investors. Director Tim Murphy said: “Paul has been an ideal partner – he has worked hard with his team to develop the business and we are delighted to be able to sell our shareholding to him whilst achieving a solid exit for our investors.
Now is the perfect time to take sole ownership and drive the next phase of growth
"This is particularly pleasing in such a turbulent market when exits for institutional investors are thin on the ground. Using growth capital to transform the business and then achieve a management buyout with Paul, we see as a great success story.”
Peter Rooney of Mercia said: "Having worked with Paul over the last five years, we are very impressed by his achievements. Rothband is a real Lancashire success story – with its roots dating back to around 1860, it is now one of the leaders in its field. We are pleased to be supporting this deal which allows Paul to take full control of the business and lead it to the next stage of its development.”
Legal advice on the transaction was provided by Richard Robinson at Napthens and Seneca Partners was advised on the sale by Kourosh Mehrabani at K M Business Advisory.
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