Dunedin announced today that it has sold its hi-tech upper limb prosthetic business in Steeper Holdings Limited (“Steeper”), to Ottobock, for an undisclosed sum. The sale completes the final exit from Dunedin Buyout Fund, a 2001 vintage fund which has performed well for investors, with a gross IRR of 34%.
This follows a busy transactional period for Dunedin which has made two exits, two recapitalisations and two investments over the last twelve months including the sale CitySprint as well as investments in Alpha FMC and Kingsbridge Risk Solutions. Dunedin is currently investing Dunedin Buyout Fund III, a £300 million fund raised in June 2013.
Nicholas Hoare, partner of Dunedin who led the exit commented: “We invested in Steeper in 2005. Subsequent changes in NHS purchasing and funding constraints meant we had to change strategy and move away from Steeper’s reliance on the NHS. The business was refocused from a services business into a global manufacturer of orthotics and prosthetics. Dunedin invested further in Steeper to support these growth plans helping it to break into new markets including the US and launching new products such as the bebionic hand. The sale to Ottobock is an excellent fit and we are confident that the business will continue to deliver on its growth ambitions.”
Shaun Middleton, managing partner of Dunedin commented: “We are committed to long-term value creation and to driving the growth and internationalisation of the businesses we back. Steeper is a good example of this support. We are delighted to have completed the final exit from Dunedin Buyout Fund, a 2002 vintage which has been a great success, generating strong returns and significant value for our investors.”
Advisers on the transaction include:
- Corporate Finance - KPMG - Christian Mayo and Ben Taylor
- Legal - Gateley - Paul Hayward and Paul Simpson
- Tax - Deloitte - Roger Parr and Liz Ballinger