£90 million deal for Kee Safety
Cradley Heath safety equipment company Kee Safety has been bought by its management in a £90 million deal.
The company supplies safety systems all over the world and employs 274 people. Based on Cradley Business Park is achieved revenues of £35 million in 2012.
Its customers range from multi-national corporations to major contractors, distributors and installers and its products include barrier and guardrail systems, harnesses, bolts, anchors systems and other equipment to enable people to work safely at heights.
The company was founded in 1934, making its cast iron Kee Klamp barrier system for the agricultural market and now has operations in Germany, the USA, Dubai, Canada, China, France and Poland following substantial growth over the last decade.
The management team has bought a majority interest in the business from owner LDC - the private equity arm of Lloyds Bank - with the backing of investment group Dunedin, which is investing £32 million into Kee to enable it to continue its overseas expansion.
The deal has been backed by debt financing arranged by HSBC and Lloyds.
Nicol Fraser, a partner at Dunedin who now joins the board at Kee, said: "Kee Safety represents an exciting opportunity for Dunedin to invest in a first class management team with a track record of delivering into international markets. The business enjoys strong brand recognition and loyalty across its global customer base and has successfully utilised this strength to develop the brand and expand its routes to market.
"The company offers a scalable platform to further exploit international growth opportunities. We look forward to working with management to take their products into new markets where demand is high due to a worldwide increase in the enforcement of safety regulations."
Kee Safety chief executive Chris Milburn added: "Dunedin was the obvious fit for us. They have a strong partnership approach and a reputation for delivering on what they say they will do. They also have a proven track record of enabling businesses to achieve growth organically and through acquisition. Further international expansion is a key element of our growth strategy and we are confident that they will help us to realise these ambitions."
LDC bought its stake in Kee Safety in February 2011, backing management plans to introduce new products and expand into the US, Europe and the Middle East.
