LDC backs MBO at pump manufacturer
LDC in the Midlands has backed the management buyout of water pump manufacturer Stuart Turner in an undisclosed deal.
The investment will enable Oxfordshire-based Stuart Turner to accelerate its buy-and-build strategy, target further growth in the commercial pumps sector and support international expansion.
The manufacturer, founded in 1906, supplies products for the commercial and domestic markets, including a patented solution for mains water pressure issues.
The business is led by CEO Mark Williams and Financial Director Malcolm Harris, and employs more than 100 people. The business has achieved significant growth over the past six years generating turnover of over £22m for the financial year ending September 2016.
Following LDC’s investment, Stuart Turner also plans to accelerate its targeted acquisition strategy having identified suitable opportunities in the commercial pump sector and adjacent product categories. This follows the business’ acquisition of two leading UK pump manufacturers, TWS and Allan Aqua, in the last two years.
Mr Williams said: “LDC recognised the growth potential of the business and immediately bought into the existing buy & build acquisition strategy. Importantly, they also saw the opportunities presented by new product introductions and further geographical expansion.”
The deal, which will enable existing shareholders to exit the business, was led by Matt Newbold, Investment Director, and Andy Lyndon, Head of LDC in the Midlands.
Steve Lee will move from his current non-executive director role where he has supported the business for six years to become non-executive Chairman.
In addition, Duncan Cooper, former regional managing director at Grundfos, one of the world’s leading pump manufacturers, has also been appointed as non-executive director. He brings more than 20 years’ experience, having led Grundfos’ operations in Europe, Africa and the Americas.
Mr Lyndon added: “Mark and the team have built a fantastic business over the years, and through a commitment to product innovation it consistently delivers market leading solutions to customers in both the commercial and domestic pump markets.
“Its recent acquisitions are a clear indicator of the management team’s ambition and with the company’s technical capabilities and strong customer base, Stuart Turner is well placed to further strengthen its market leading position both at home and overseas.”
LDC was advised on the deal by the Birmingham team at Eversheds and Clearwater, with the shareholders advised by Orbis Partners and Gateley.
Due diligence was provided by KPMG and CIL.
Debt facilities were provided by Barings and RBS.
