MML Capital Partners ("MML") has backed the merger of UK portfolio company Exploration Logistics Group and US business MEDEX Global Solutions to form Frontier MEDEX Group.
The merger combines two of the world's most respected medical, safety, assistance and security solutions providers. West of England-based Exploration Logistics Group has pioneered remote-site medical and safety solutions. Through its divisions Frontier Medical, Medekit and Exlogs Safety, it has set medical standards for the oil and gas industry and enabled governments, NGOs and organizations to work effectively and safely in hostile locations. Meanwhile, Maryland-based assistance, medical and security provider, MEDEX Global Solutions has since 1977 delivered emergency medical and security assistance and intelligence services, including emergency evacuation, aviation security and protection for corporate travellers and individuals worldwide. Through MEDEX Insurance Services, MEDEX also provides insurance coverage and other services to millions of travellers, expatriates and students.
Together as Frontier MEDEX they deliver a fully integrated, world-wide assistance, medical, safety and security service. The combined business has a turnover in excess of $100m.
MML has invested US$21 million in the combined entity for a significant minority stake, with management and founding shareholders of both businesses investing alongside MML. Ian Wallis and Luke Jones led the deal for MML. Senior debt was provided by HSBC Corporate and Structured Banking, Bristol (Paul Crocker, Sharon Daw and Craig Phillips).
Frontier MEDEX CEO, Tim Mitchell, commented. "We chose MML as our financial partner because of its track record in supporting portfolio companies with capital for acquisitions and transatlantic investing experience. The team's creative approach to structuring this investment was vital in helping us deliver what is a transformational deal for both companies.
"This merger is timely and significant. Our customers have already witnessed our rapid response capabilities in both Tripoli and Cairo, where we were first on the ground to evacuate more than 600 civilians from unexpected injury, unrest and rioting. At a time when we face growing environmental and political instability, Frontier MEDEX is uniquely positioned to help individuals and organizations achieve their global ambitions and fulfill their duty of care, within this landscape of increasing uncertainty."
MML Managing Partner, Ian Wallis, added. "This has been a fantastic project to work on and a very exciting one. Helping to bring together two market-leading businesses on either side of the Atlantic with significant growth prospects is a tremendous opportunity for us. We will continue to work closely with management as we move forward to deliver the plan."
HSBC Head of Leveraged Finance Western & Wales, Paul Crocker, further added. "We were very pleased to support our customer, Exploration Logistics, and MML in their merger with Medex Global Solutions. This transaction further demonstrates HSBC's continued commitment to support our customers with their future growth strategies".
The board of the combined business comprises Chairman Christopher Kemball, CEO Tim Mitchell, President and Chief Operating Officer Americas Bruce Kirby, CFO Brian Muirhead, Exploration Logistics founder Mike Jaques, who becomes President and Chief Operating Officer EAME, key MEDEX shareholder Jud Dayton and Ian Wallis and Luke Jones from MML.