Private equity investor exits manufacturer after revenue doubles

LDC, the private equity investor part of Lloyds Banking Group, has sold its stake in Cardel to Lifco after a long-term partnership.

Cardel, based in Hertfordshire, is a manufacturer and supplier of specialist components for secure ID documents, payment cards, printed circuit boards (PCB), fuel cells, wooden furniture, and other laminated products.

Its materials are used globally, in about one-third of bank cards and around 60% of identity cards and passports.

LDC first supported Cardel’s management team, led by CEO Marshall Haldane, in May 2017 to aid the company’s growth both internationally and domestically.

During the partnership with LDC, Cardel was able to invest in new product development, introducing innovations in the card payment and secured identification markets. Cardel more than doubled its revenue and EBITDA, and its employee count increased from 22 to 74.

Haldane said: “The team at LDC has played a big part in our success in recent years, not only helping with our M&A strategy and the acquisition of VTT, but providing invaluable support and guidance along the way. We feel we’re now well set up for our next phase of growth, and we look forward to working closely with Lifco to deliver it.”

Swedish investment group Lifco will now support Cardel in its next growth phase, focusing on further global expansion, product development, and application development, particularly within the PCB market.

The transaction was led by investment director Matt Newbold and investment manager Demetri Theofanou from LDC’s West Midlands team.

Cardel currently serves over 275 customers in more than 55 countries, with technical support and representation in 14 countries, including the US, China, and India.

Matt Newbold, investment director at LDC, said: “Cardel is a business that continues to be at the forefront of innovation, both within the card payment and secure documentation markets. It is a true market leader in this space and the ever-critical area of identity security, supplying technology that keeps people’s identities and assets safer. We know Marshall and his team will continue to lead this niche global market, and we wish them every success in the future.”