Franklin Medical Products Limited
Franklin was formed in February 1982 to effect the purchase of Searle Medical Products through a buyout by management supported by Cinven. Its owners, the multinational pharmaceutical company G.D. Searle, considered it non-core.
The business manufactured, marketed and distributed medical equipment to hospitals throughout Europe. The business was well invested and it generated a strong positive cash flow.
The management was augmented through the appointment of a chairman and an experienced finance director. Their aims for the business were to increase its market share by improving its products and adding new ones to its range.
The buyout performed well, repaying its debt quickly and fully and began to attract interest from larger competitors. In September 1985, the business was sold to a trade buyer ensuring its future investment needs.
Multiple returned from investment: 1.7x