MID-MARKET private equity firm LDC has completed a multi-million pound investment in a building safety business.
The deal, transacted out of Birmingham and featuring a host of Midlands-based advisory firms, has seen LDC take a major stake in Kee Safety.
LDC’s investment will help support the firm’s roll-out of new products, further expansion of international markets such as the Middle East and China and future acquisitions.
Headquartered in Meriden, Kee Safety produces devices to ensure the safety of workers on high platforms and roofs. The business operates brands including KeeGuard, Kee Line, Kee Walk, Kee Access and Kee Klamp.
Latest accounts for the year ended December 2009 show the firm recorded a pre-tax profit of £3m (£1.6m after tax) on a turnover of £26.26m.
LDC managing director in Birmingham, Martin Draper said the deal marked a positive start to 2011 for the firm.
“In Kee Safety, we are partnering with a high-quality management team and a business which has a strong platform from which to grow. The business has a global reputation for innovative safety solutions and is a true market leader. Going forward, we will work closely with the team to identify acquisition opportunities to deliver further growth.
“This represents our third investment in 2011, following on from our successful exit and reinvestment into Integrated Dental Holdings and the acquisition of Hi Level Platforms by portfolio company Kimberly Access. This level of investment momentum confirms our long term commitment to supporting regionally based mid market businesses with ambitious growth plans,” he said.
The deal was completed with support of Midlands-based advisers including Eversheds, which acted as legal adviser to LDC and Browne Jacobson, which advised Kee Safety’s management team. Grant Thornton provided financial due diligence and PwC provided commercial due diligence on the deal. Debt funding was provided by Lloyds Bank Corporate Markets Acquisition Finance, with legal advice from Wragge & Co.
Kee Safety, which employs around 180 staff and exports to over 35 countries, also operates from Reading and Cradley Heath, and has overseas operations in the United States, Canada, Germany and France, together with a growing presence in the UAE, Poland and China.
Chris Milburn, chief executive of Kee Safety, said the firm was delighted to have won the support of LDC.
“With the number of recent product launches and a rapidly expanding overseas presence, the investment will support Kee Safety in realising its future growth ambitions,” he said.
Working alongside Mr Draper on the deal were investment directors Andy Lyndon, Chris Hurley and Matthew Norrington. Martin Draper and Andy Lyndon will join the Kee Safety board.
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