Management buy-out for Nottingham’s Femcare Holdings Limited

Femcare Holdings Limited, the Nottingham-based internationally renowned healthcare group, has undergone a multi million pound management buy-out backed by Barclays Private Equity & Lloyds TSB Bank plc.  

The Femcare group provide devices for use in surgical operations in the UK and overseas. The company markets and distributes the Filshie System, a unique titanium and silicone rubber clip that is the western world’s leading female sterilisation device.  

Advised by Clearwater Corporate Finance, the MBO team is being led by the current group managing director, Bernard Sweeney together with Dr Marcus Filshie - the group’s medical director and inventor of the Filshie clip, alongside Martin Nicholson - finance director and Adam McQuilkin - marketing director. Terry Watson executive Chairman of Robinson Healthcare Ltd joins the board as Non Executive Chairman.  

The group has two main subsidiaries, Femcare Limited and Nikomed Limited. Femcare is the trading vehicle for the worldwide marketing and distribution of the Filshie clip. Nikomed, acquired by the group in 2001, is a UK focused medical distribution company specialising in the general surgery; gynaecology, urology and patient care sectors.  

Bernard Sweeney, Femcare’s group managing director commented ‘We are already a significant exporter and our future growth plans are based on increasing penetration in the global marketplace through both existing and new products’.  

The first prototype of the Filshie Clip was devised by Dr Filshie in conjunction with Mr Donn Casey in 1973 and was first marketed in 1982. By 1989 over one million pairs of clips had been sold. According to the World Health Organisation, female sterilisation is the most common form of contraception. The Filshie system, which is the simplest, safest and most effective product for sterilisation, is sold worldwide through a network of distributors, each of which has an exclusive territory and distribution agreement.  

Nikomed, which has been in existence for over 12 years, solely serves the UK market and its customer base includes; NHS Trusts, NHS Logistics and private healthcare providers. Nikomed’s competitive advantage centres on its commitment to customer service. Virtually all deliveries are despatched on the day the order is received.  

Clearwater Partner, Jon Hustler and Director, James Ward orchestrated the MBO. Mark Taylor, who will join the board as a Non Executive Director, and Andy Murtagh represented Barclays Private Equity and Paul Whitehouse led the Lloyds TSB Corporate Acquisition Finance team.  

Jon Hustler said: “Femcare is a truly innovative company with excellent prospects. In particular the US market presents numerous opportunities for the group to enhance its market share and position. This is a strong, well-regarded management team and under their stewardship I expect the business to go from strength to strength.”  

Mark Taylor from Barclays Private Equity added: “We are very excited to have backed this management team. They have grown the business rapidly and have a market leading product with huge potential for further geographic expansion.”  

Legal advice to Barclays Private Equity and Newco was provided by the Birmingham office of Pinsents (Joanne Ellis) with Gateley Wareing in Nottingham (Mark Rutherford) advising the Bank. Duncan Taylor of Nelsons (Nottingham) provided legal advice to the management team.