LDC investment in business services firm will create 100 jobs
A CHESTER-based business services firm, has secured a multi-million pound minority investment from private equity firm LDC to accelerate growth and fund future acquisitions.
£11m-turnover Ellis Whittam, which provides advisory and fully-outsourced employment law, HR and health & safety services, made profits of £3m in its last financial year.
Founded in 2004 by solicitor Mark Ellis, its clients include Pure Gym, Culina Logistics, Red Letter Days, The Chartered Management Institute, The Chartered Quality Institute and Toni & Guy.
The company employs 165 staff from its headquarters in Aldford, near Chester but says that the investment from LDC will see staff numbers grow by 100 over the next four years.
Ellis, who is currently chairman and remains a major shareholder, will take on the role of chief executive. Current chief executive Deven Thakrar, who has held the role for the last seven years, will step down to focus his other business interests.
Ellis said: “In LDC we’re confident we have the right partner to deliver the next phase of our journey, as the team fully understands our vision to be the UK’s best fixed-fee professional support business.
“We have a shared ambition and the partnership will help us to bring our expertise to many more management teams throughout the UK.”
The transaction was led by investment director Richard Ibbett and director and co-head of LDC in the North West Johnny Bell, who will both join the board of the business.
Ibbett said: “People remain at the heart of all employers and organisations are increasingly looking externally for specialist HR and health & safety support that can reduce overheads, but also better manage their legal, people and safety agenda.
“Since Mark founded the company, Ellis Whittam has built an offering that delivers just that and has become an integrated and critical support function for thousands of employers. We look forward to working with the team as it eyes new opportunities to expand.”
Robert Morgan, the former chief executive and executive director of Hays plc, will joined the board as its new chairman, while Colin Kemp has been appointed as a non-executive director. Kemp is a non-executive director at Rightmove plc and formerly managing director of telephone banking at Lloyds Banking Group and commercial director at Halifax Bank.
LDC was advised on the Ellis Whittam investment by Rothschild and Paul Medlicott, George Danczak, Helena Drury and Josie Marsden at Addleshaw Goddard. KPMG provided financial due diligence and PMSI provided commercial due diligence. Ellis Whittam was advised by Deloitte and DWF.
Medlicott said: “We are delighted to have advised long-standing client LDC on its investment into Ellis Whittam. Despite the unexpected Brexit vote, private equity houses, like LDC are continuing to show enthusiasm with good terms available for sellers.”
