YFM Equity Partners has sold its shareholding in KeTech Defence Ltd, part of KeTech Group, to safety and security company Wescom Group.

The sale will deliver a 2.8x return for YFM’s investors and enable KeTech Defence to pursue global growth as a provider of innovative defence technologies for the homeland security sector.

It said the business will boost Wescom Group’s defence portfolio through its experience and expertise in the provision of rapid detection solutions for defence.

YFM invested into the Preston- and Nottingham-based firm in 2015. It is retaining its shareholding in KeTech Systems, a specialist provider of real-time intelligent software systems for the rail industry.

“YFM has been instrumental in the success stories of both KeTech Defence and KeTech Systems,” said KeTech Group CEO Denise Lawrenson. 

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“The YFM team has helped to secure an exciting future for KeTech Defence, which will go on to prosper under Wescom Group ownership. We now look forward to pursuing further growth plans for KeTech both in the UK and overseas with YFM’s backing and support. 

“We are excited that we now have the opportunity to concentrate on building the Rail business and expanding our portfolio further, working with operators and train builders alike to deliver exciting innovative and reliable systems across the globe.”

Gavin Chadwick, YFM portfolio director, added: “We are confident that KeTech Defence will flourish under its new ownership and are proud of the role we have played in nurturing the business and securing a strong return for our investors. 

“Our focus now will be on supporting KeTech and helping that exceptional company to continue blazing a trail in the rail sector.”

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