AFM Invests £1.1m as part of a £4m MBO of Liverpool-based International Safety Products
17th December 2008
Managers at the world’s largest manufacturer of inflatable marine lifejackets have bucked the recessionary climate by buying the Bootle-based business in a deal worth up to £4m.
International Safety Products (ISP) has changed hands in the transaction led by the ISP management team, John Rogers and Geoff Billington, who have bought the business which was founded in 1981.
Funding comprised £1.1m from Alliance Fund Managers through the £40m Merseyside Special Investment Fund’s Venture Fund and support from the Co Operative Bank, both of which are based in Liverpool. AFM’s investment team was led by investment director Matt Allen and assisted by its investment manager Jon Wormald. Dave Matthews led the transaction for the Co-Operative Bank.
All 95 staff based at ISP’s headquarters in Hawthorne Road, Bootle and its additional factory premises in Birkenhead will be retained under the new ownership.
The company has been the world’s largest maker of inflatable marine lifejackets – which account for about two-thirds of its turnover - and other marine survival equipment, including immersion suits and liferafts, since 1997. Its product range includes items produced under the Challenger label for the commercial marine safety sector, waistcoats specially designed for the police, armed forces and fire and rescue services and is the UK importer of the ZODIAC range of SOLAS approved liferafts and rescue boats.
ISP’s output now accounts for about 13 and 10 per cent of the global commercial and leisure lifejacket markets respectively. Its blue-chip clients include Shell, British Gas, Texaco, the Ministry of Defence and BP, to whose oil rigs it has been the only approved inflatable marine lifejackets manufacturer since 1998.
The company has a growing order book, and a turnover in excess of £7m a year, which is projected to grow further over the next five years.
Mr Rogers said: “ISP has become a globally-renowned brand in the marine safety sector, with a large and loyal customer base and a reputation for breadth of product styles, quality and production flexibility. We’re therefore in a fantastic position to exploit the expected significant growth in the inflatable lifejacket market in the next five years, as demand for lightweight, compact, reliable life-saving devices continues to gather pace.
“Despite the recessionary climate, we had no hesitation in buying the business and are very excited about the prospects for the company in the new era it’s entering.”
Matt Allen, investment director with AFM added: “We are delighted to support a long established local business and this investment will ensure that ISP will remain on Merseyside. The company is a global player in the marine safety equipment industry and this market has experienced excellent growth over recent years and is expected to continue in the long term.”
The management were advised by Paula McGrath and Mark Woods from the corporate finance team of leading accountants and business advisers PKF.
Legal advisors to the parties were: Gareth McIntegart at DWF (the management team); John Schorah at Weightmans (vendor); Mark Rathbone at Brabners Chaffe Street (AFM); and Patricia Grinyer at Mace & Jones (the Co-Op Bank).
Ends
For further information please contact Angela White at AFM on 0151 242 6376.
Back to Venture Fund News and Deals
Photo shows L-R John Rogers (ISP) Jon Wormald (AFM) Geoff Billington (ISP) Matt Allen (AFM)
Back to Venture Fund News and Deals