Tuesday, June 25, 2013

News: LDC commit to engineering and manufacturing sector

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Mid-market private equity provider, LDC, has announced that it has increased its new investment funding commitment to specialist engineering and manufacturing businesses to £300m.

Part of the Lloyds Banking Group, the firm provides private equity to support management buy-outs, help business owners sell a percentage and release equity in their business, fund expansion or make acquisitions.

After announcing an initial commitment of £200m to the sector in October 2011, LDC has since completed eleven new investment transactions into manufacturing and specialist engineering businesses, placing total equity funding of more than £190m. Following this success, the private equity firm will now look to invest an additional £100m more than its original target.

The focus is on mid-market UK businesses in the £10m to £150m enterprise value range and, typically those with specialist manufacturing capability in niche sectors such as aerospace and power generation, which have featured strongly in the commitment to date.

Joe Farren, investment director at LDC in Yorkshire and the North East, who is leading the initiative in the region, said: "Our initial investment initiative to back high quality manufacturing and specialist engineering businesses has been incredibly successful, but we believe that there is a great deal more potential to support businesses in this sector so we have decided to uplift this funding in order that more companies can benefit.

"By increasing our commitment to invest £300m of new capital to this important industry sector, LDC is reiterating its commitment to, and on-going confidence in, UK manufacturing.

"This increase in funding will give LDC's regional teams greater scope to explore investment opportunities with fast growing manufacturing and specialist engineering businesses and we hope more management teams will consider the benefits that partnering with a private equity investor like LDC can bring."

One high profile deal saw LDC take a stake in the Rotherham-based F1 team, Virgin Racing. The team was created in 2009 when Dinnington's Manor Grand Prix teamed up with Sir Richard Branson's Virgin brand. In April 2013 LDC sold its minority shareholding in the team to Marussia, the Russian supercar manufacturer that took full control of the team after earlier investment in 2010.

LDC website

Images: Marussia F1

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