LDC sells stake in Midlands security firm
PRIVATE equity firm LDC has exchanged contracts to sell its stake in Midlands-based Vision Security Group, one of the UK’s leading suppliers of security services, subject to regulatory clearance.
LDC said the deal, handled out of Birmingham, provided an attractive return. The firm, part of Lloyds Banking Group, took a significant minority stake in VSG in September 2007.
Northampton-based VSG, which provides security services such as manned guarding, electronic security systems, remote monitoring, training, background screening and a range of other support services, has been acquired for £64m by FTSE 100 listed Compass Group.
Since LDC invested in 2007, VSG has outperformed against its competitors and delivered substantial sales and profit growth. Turnover has increased by more than 50% to £140m during the last three years; while employee numbers have also risen, from less than 4,000 to nearly 6,000.
LDC has supported the management team in both its organic and acquisitive growth, in particularly acquiring two electronic security providers, developing ancillary services, opening additional branches and helping to develop a clear management succession plan. The original investment and ultimate exit from VSG was led by John Garner.
Commenting on the deal, LDC Midlands Managing Director, Martin Draper said: “We have enjoyed working closely with VSG’s management team over the last three years, during which time we have enhanced performance and successfully generated scale in the business.
“Growth has been achieved both organically and through acquisition, which we consider to be fundamental in our continued support of the businesses we invest in.
“The sale to Compass Group represents an excellent outcome both for VSG’s employees and customers and we wish them all continued success in the future.”
The transaction was supported by a strong team of local advisors, including Andy Currie and Justin Crowther at Catalyst Corporate Finance who acted as lead advisors, while Stephen Kitts of Eversheds in Nottingham provided legal advice to the shareholders.
VSG will now become a discreet business within Compass Group’s Facilities Management offering.
Keith Francis, Managing Director of VSG commented: “We have enjoyed good working relationships with the LDC team over the last three years. Their support has been excellent and the input they have had into the business has undoubtedly ensured that VSG is now well positioned to progress further to the next level of development.
“The deal with Compass Group is the right move for VSG and going forward, their partnership will allow us to further our growth strategy and take the business into a new dimension.”
