LDC fired-up with £62m Angus deal
PRIVATE equity investor LDC’s Manchester office has backed a £62m buyout of a manufacturer of fire fighting technology and products.
Angus Fire, which is based in Oxforshire and has a site in Bentham near Lancaster, has been acquired from US group United Technology Corp.
The £96m turnover company us already selling products worldwide and is looking to drive sales in the oil and gas sector.
LDC has taken a significant equity stake in the business which has been formed via the acquisition of four international trading divisions of Connecticut-based UTC – Angus Fire Products, Angus Fire Engineering, National Foam (US) and Eau et Feu (France).
The group designs and manufactures fire hoses, industrial hoses, foam concentrates and engineered fire fighting systems. It also makes large diameter industrial hoses for a variety of industrial applications including water transfer for the large and growing US hydro-fracking market.
Angus exports its products to over 100 countries with its largest markets in the Middle East, Asia Pacific and North American regions.
Angus Fire, which has been established for over 100 years, operates a production facility for foam, hoses and engineering products in Bentham, and carries out its engineered fire fighting systems design and project management activities for the oil and gas sector in Thame, Oxfordshire,
LDC’s nvestment will be used to increase capacity and drive operational improvements to support the continued organic growth of the company.
Jonathan Bell, director at LDC in the North West who joined the board at completion and led the deal alongside investment director Simon Braham, said: “Angus Fire, National Foam and Eau et Feu are recognised as premium global brands within their markets and have significant potential to further increase their presence in major emerging export markets in the Middle East, Asia Pacific and North and South America.
“LDC is excited about the opportunity to bring the respective businesses together as part of this transaction to create a true global market leading group.
“The deal also illustrates our ongoing commitment to back British manufacturing and engineering businesses, and support the country’s leading management teams in achieving their long-term growth ambitions.”
Paul Williams, chief executive of Angus Fire, said: “LDC’s investment provides the financial and strategic support to help us capitalise on the increased demand in emerging markets and the buoyant oil and gas sector for our products.”
A package of senior debt facilities was provided by the acquisition finance team at Lloyds Bank Commercial Banking and RBS to support the transaction.
A team from Deloitte corporate finance in Manchester advised LDC with James Kerrigan and Nick Roome of DLA Piper in Manchester acting as legal advisers. Mike Reeves and John Clarke at Clearwater Corporate Finance, also in Manchester, advised management, while new North West corporate finance partner Tim Morris at Ernst & Young advised UTC.
