Charterhouse Said to Mull Tunstall Refinance Instead of Sale

  • Triton said to value company at about 300 million pounds
  • Buyout firm acquired Tunstall in 2008 for 530 million pounds

Charterhouse Capital Partners is considering refinancing the debt for its U.K. medical equipment company Tunstall Healthcare Group Ltd. if it can’t get a high enough price from a bidder, people familiar with the matter said.

Buyout firm Triton Partners had valued the business at about 300 million pounds ($425 million), which Charterhouse rejected as too low, the people said, asking not to be named because the deliberations are private. Talks with potential bidders, including Triton, are ongoing, the people said. No final decisions have been made, they said.

Tunstall, which has about 230 million pounds in debt excluding shareholder loans, might need to be deleveraged before a refinancing, the people said. Charterhouse acquired Tunstall, which designs and sells sensors and software that monitors the elderly and chronically ill, in 2008 in a deal valued at 530 million pounds, the company said on its website.

“Tunstall’s turnaround plan is well advanced and we are seeing improved performance,” the company said in an e-mailed statement. “Our focus is on delivering for our customers and helping them exploit the possibilities that new digital technologies present.”

A spokesman for company declined to comment further. A spokesman for Triton declined to comment.

Tunstall reported annual sales of 212 million pounds for the fiscal year ended in September 2015, down from 215.2 million a year earlier, according to a filing with Companies House. Earnings before interest, taxes, depreciation and amortization rose to 44.3 million pounds from 43.3 million pounds. The company reported net debt of 1.2 billion pounds for the year ended in September, which includes bank debt and shareholder loans, which are treated as equity.

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