DYCEM Limited

TYPEManagement Buy In / Retirement Sale

DATEJanuary 2016

SECTORManufacturing / Medical Devices

In situations where Owner-Managers are looking to retire, Longacre works with a deep bench of experienced Operating Partners across a variety of sectors to find a management solution

“ SEA Equity worked tirelessly to find a solution that allowed me to exit by bringing in new leadership and an injection of capital. We built a strong relationship during the transaction and I have full confidence that under the ownership of SEA Equity and with Stewart at the helm, Dycem will flourish and realise its full growth potential.”

MARK DALZIEL
PREVIOUSLY DYCEM MD AND SHAREHOLDER, NOW A DYCEM NON-EXECUTIVE DIRECTOR

The business

Dycem produces contamination control solutions for clean room and other controlled environments. It serves its blue-chip, global base of customers in the pharmaceutical, medical device and high-end manufacturing industries from its headquarters in Bristol.

Transaction Challenges:

  • Dycem’s owner-manager wanted to retire and there was no senior management to take the business forward
  • Manufacturing premises and financial and operational systems needed substantial modernisation
  • Growing the business required significant investment into expanding Dycem’s  international footprint

Longacre Solutions:

  • We found a new management team (CEO and CFO) through our network, which allowed  the owner manager to retire and cash out in full
  • Owner manager enjoys continued non exec involvement (1-2 days per month)
  • We initially funded the entire transaction with our own capital to minimise complexity  and maximise certainty to close

 

Development since acquisition

Revenue and profits more than doubled

Invested in people (overall increase from 50 to 90)

Invested in equipment (5x increase in capacity through overhaul of the manufacturing operation and modernisation of the office space)

Expanded overseas: US distribution centre and new sales office, continental European presence