LDC’s £9m model investment

MODELZONE Holdings, a North West retailer of collectible models, has been sold in a £9m management buy-out.

The deal is backed by the London office of private equity firm LDC, which has paid £5.9m and will fund a £3.6m investment over the next three years.

Manchester-based Modelzone, which has 29 stores nationwide, offers a broad range of models including plastic kits, die cast collectibles, remote control vehicles and railways. 

Outlets include Manchester Deansgate, The Trafford Centre and other major locations such as the Bluewater, Lakeside, Metro Centre, and Meadowhall shopping centres.

LDC has been working with the management for the last eight months.

David Mordecai, Modelzone Group managing director, said: ‘The assembled team along with LDC’s input have already helped improve sales and we are confident these growth levels will continue as our development strategy is rolled out.’

LDC’s initial £5.9m will be supported by further £3.6m funding over three years to enable Mr Mordecai and his team to enhance the group’s market-leading position and implement an accelerated retail roll-out plan.

In addition the group will make selective acquisitions. The deal also includes Amerang, a Sussex-based wholesaler of models to international markets.