Private equity firm LDC has made a significant investment in Medray, a healthcare equipment and service provider. This move comes as Irish private equity investor Erisbeg exits after first investing in the business in 2019.
Medray, known for its diagnostic imaging equipment like X-ray and CT machines, supplies and services equipment for around 2,700 clients in the UK and Ireland. The company’s footprint spans healthcare, veterinary, and dental sectors.
LDC’s Strategic Investment
Private equity investor LDC has made a substantial investment in healthcare equipment and service provider Medray Group. The transaction signifies an exit for the Irish private equity firm Erisbeg, which invested in Medray in 2019.
Medray, renowned for supplying diagnostic imaging equipment such as X-ray and CT machines, serves various sectors including healthcare, veterinary, and dental in the UK and Ireland. Its services encompass not only supplying and installing the equipment but also maintaining it for approximately 2,700 clients.
Expansion and Workforce
Medray employs 120 people, with teams stationed at its Dublin base and a distribution centre in Hemel Hempstead. The company has consistently grown, completing five acquisitions since 2020 to break into the UK market and enhance its presence in the veterinary and dental sectors.
LDC aims to support Medray’s management team, led by CEO Siobhán Crowley, in implementing a robust growth strategy. This includes investing in its sales team, making further acquisitions, and expanding into additional diagnostic imaging modalities.
Leadership and Board Changes
LDC’s North West team, including partner John Clarke, Investment Manager Endrit Gashi, and investment executive Jen Hatton, led the transaction. Consequently, John Clarke and Endrit Gashi will join the Medray board as non-executive directors.
Additionally, Steve Diamond will join as non-executive Chair. Diamond brings a wealth of experience from the manufacturing and global distribution sectors, having served as CFO and CEO of the LoneStar Group.
These appointments are expected to bolster Medray’s leadership, providing strategic guidance and ensuring the continued successful growth of the company.
Market Demand and Technology
CEO Siobhán Crowley highlighted the increasing demand for imaging devices. This surge is driven by stringent regulations and the need to screen for chronic illnesses and support an ageing population.
Crowley emphasised the critical role of reliable equipment for healthcare providers. Malfunctioning tools can significantly impact their lifesaving work.
Crowley stated, “Hospitals, dental practices, and vets need a provider that helps them stay updated with the latest technology and ensures their equipment remains operational.”
LDC’s Track Record and Medray’s Prospects
Crowley praised LDC’s history of flexible funding and aiding healthcare businesses in scaling up across the UK and overseas. This support aligns with Medray’s ambitious growth plans.
She said, “We were impressed by LDC’s track record of funding and expansion support. We’re excited about our future with them.”
John Clarke from LDC echoed this sentiment, recognising Medray’s strong market position and the experience and ambition of its management team.
Advisory Roles and Future Directions
LDC was advised by Clearwater (corporate finance), KPMG (financial and tax due diligence), Candesic (commercial due diligence), and Addleshaw Goddard (legal).
Meanwhile, Medray and its shareholders received advice from Deloitte (corporate finance and financial due diligence), EY (tax due diligence), Mansfield Advisors (commercial due diligence), and ReganWall and Mathesons (legal).
This comprehensive advisory support underscores the significance and potential impact of the transaction on both Medray and the broader healthcare market.
Medray’s Ongoing Transformation
Medray’s transformation over recent years showcases its commitment to innovation and expansion. The company’s strategic acquisitions and investments have significantly bolstered its market presence.
This ongoing transformation highlights Medray’s dedication to providing cutting-edge diagnostic imaging solutions across various sectors.
LDC’s investment in Medray signifies a pivotal moment for the company, promising robust support and fostering growth. LDC’s history of aiding businesses like Medray provides a solid foundation for future expansion.
As the demand for advanced diagnostic imaging grows, Medray is set to continue its innovative trajectory, bolstered by strategic leadership changes and comprehensive market insights.
