Rutland looks to clean up with Dirt Devil(2)

UK turnaround specialist Rutland Partners has bought Pulse Home Products, a supplier of domestic appliances, as it seeks to invest the £320 million fund it closed two weeks ago.

Rutland Partners, a UK turnaround investor, has made the second investment from its second fund, which it closed two weeks ago on £320 million (€470 million, $646 million). The firm has bought domestic appliance supplier Pulse Home Products from Alba, a London-quoted brand supplier, for £51.5 million.

Alba originally bought the business in 2001 and merged Pulse’s operations into its own. Rutland is investing around £25 million, while CIT Bank is providing debt facilities.

Pulse provides branded products, including those by Nicky Clarke and Dirt Devil, to the UK home products market. The business generates sales of £118 million and earnings before interest, tax, depreciation and amortisation of £9.4 million.

David Allen, who has been with the business since 1993, leads the management team at Pulse.

The deal is the latest in a string of deals in the UK domestic products sector. Last month, LDC sold the business behind iconic hair-styling brand ghd to Montagu Private Equity for £160 million.

Rutland has raised £532 million to date through two funds. It made the debut investment from its second fund last month when it bought Attends Healthcare from 3i for €93.5 million.

Last week, Rutland sold Swedish pawnbroker Svensk Pantbelaning to Preato Capital for £5.8 million, delivering a return of 2.7 times the original investment.