LDC commits £200m to support manufacturing growth
PRIVATE equity provider LDC has announced it is to commit £200m of new investment to support specialist engineering and manufacturing businesses over the next three years.
Martin Draper, managing director LDC Midlands, said the decision reflected the importance of the sector to the economic development of the West Midlands.
“LDC is committed to supporting the growth of high quality manufacturing and specialist engineering businesses. Many UK businesses have developed best in class manufacturing technology and capability and are extremely well placed to deliver strong and sustainable growth across both the established and emerging growth economies,” he said.
“By pledging £200m of capital and a dedicated and experienced team over the next three years to this important sector, LDC is demonstrating a clear commitment to, and confidence in, UK manufacturing.”
The initiative will be led out of LDC’s Birmingham office by investment directors Steve Aston, a former CFO at Doncasters and Rob Schofield, who previously worked for PwC, Ernst & Young, and most recently, US investment bank Jefferies & Co. Both men have extensive experience of investing in and working alongside manufacturing companies.
The firm said while the investment commitment extended to the whole of the UK, businesses in the manufacturing heartland of the West Midlands would be a key focus.
The firm already has investments in the sector including Wolverhampton-based Nuclear Engineering Services, an engineering solutions group focusing on the nuclear, marine and defence sectors; Kee Safety, a leading global provider of safety solutions headquartered in Meriden and AIM Aviation, a global leader in the design and manufacture of premium cabin interiors for commercial airlines with operations in the East Midlands.
The £200m package will focus on mid-market businesses in the £10m to £150m enterprise value range and, typically those with specialist manufacturing capability in niche sectors such as aerospace and defence, oil and gas, or power generation.
The initiative will also be supported by LDC’s Asian operation, which is based in Hong Kong. It will play a significant role in proceedings, given its relationships with manufacturing and supply-chain businesses located in high-growth Asian economies.
