GBUK secures platform investment from H2 Equity Partners

The GBUK group – which comprises trading entities GBUK Ltd and GBUK Enteral Ltd – has secured significant platform investment from H2 Equity Partners (H2), a UK and Netherlands based mid-market Private Equity firm. The shareholders of GBUK were advised by leading M&A specialist BCMS throughout the transaction, which completed in 2015.

Established in 2008, GBUK is an award-winning distributor of own brand and third-party medical consumables, supplying products including suction liners, catheters and enteral feeding products.

“We chose BCMS to help us find serious buyers with a good reputation” – Guy Mills, GBUK Healthcare

The group developed longstanding and embedded relationships with a large number of NHS departments, and is named on a number of NHS framework agreements. GBUK delivers to the majority of NHS hospitals in the UK, including all 657 acute hospitals. An estimated 215,000 GBUK products are used daily.

With platform investment from H2, the GBUK group has outlined ambitious expansion plans, including becoming a market leading specialist healthcare group.

Founded in 1991, H2 is a leading investment firm with offices in London and Amsterdam. The organisation has an established reputation for an active, ‘hands-on’ approach that supports and develops growth to build better businesses. H2 also has significant prior experience in the healthcare sector.

Deal perspectives

Guy Mills of GBUK said: “I’m delighted to have found a strong investor who is keen to support the current management team to continue growth with an independent and entrepreneurial spirit. GBUK group together with H2’s knowledge and support now have the opportunity to take full advantage of new opportunities within the UK market and abroad.”

Commenting on BCMS’ role in the transaction, Guy said: “My experience with a [previous M&A transaction] was horrific, so this time I wanted to hire an advisor good at selling businesses. We chose BCMS, who could help us find serious buyers with a good reputation. I might have had an expertise in my area of business, but didn’t have any expertise in knowing the kinds of companies who might want to buy – or could buy – my business. Coming to a third-party advisor, who is an expert in multiple sectors, and where to look, seemed sensible.”

“BCMS vetted and then arranged for prospective companies to visit us and we presented the strength and potential of GBUK, with good advice from BCMS. Importantly, we were able to gauge their likely future intentions for the organisation we had created.”

Many BCMS clients are keen not only to secure their company’s legacy, but also provide opportunity and security for their employees. As Guy explains: “We wanted to look after the staff. If we’d sold to an aggressive company, the staff might not have liked their jobs post sale. H2 were well-financed with a great reputation. There were other offers of course, but none had the same ambition for GBUK.”