LDC sells stake in nuclear business to Italians in a £30m exit
MID-MARKET private equity firm LDC has completed on the sale of its stake in Wolverhampton-based niche engineering solutions business Nuclear Engineering Services in a deal worth £30m.
The firm has sold its stake to the Ansaldo Energia Group, Italy’s largest supplier, installer and service provider for power generation plants and components.
LDC took a significant stake in NES in April 2009 and it said the transaction provided a good return, delivering in excess of twice its original investment.
With a trading history in the nuclear sector dating back to the 1950s, NES supplies bespoke solutions into nuclear decommissioning, nuclear new build and defence sectors.
The business has provided equipment to all of the UK’s nuclear power stations in both active and decommissioning phases, and is responsible for the design, construction and commissioning of three large and highly complex Silo Emptying Plants for remote material extraction from one of the principle storage buildings at Sellafield.
Since backing the business in 2009, LDC has worked in close partnership with NES’ management team to implement a strategic growth plan. During the investment period, NES has delivered substantial sales and profit growth and completed a strategic investment to install new state-of-the-art CNC machinery at its manufacturing facility in Wolverhampton and built a new strategically located Engineering and Manufacturing Centre in West Cumbria.
During LDC’s investment period, NES’ turnover has more than doubled, with employee numbers significantly increasing. In NES’ recent results for the financial year ended December 2013, turnover increased to over £37m, up from £18m in December 2008, and the business now employs more than 420 people, an increase of some 180 people over the last five years.
The original investment and ultimate exit from NES was led by Chris Hurley, LDC’s Chief Executive, and Alistair Pendleton, Investment Director.
Hurley said: “Since our investment in NES, the business has consistently outperformed, delivered solid organic growth and ultimately strengthened its position in the nuclear decommissioning and new build market, thereby driving future revenue and shareholder value.”
NES chairman Tony Eckford said: “Since LDC’s investment back in 2009, we have achieved and exceeded on our growth objectives each year. Their strategic input to our business has been invaluable, and they have been fully supportive of our expansion and investment plans.
“The deal with Ansaldo Energia Group is a great outcome for NES, providing us with a solid platform from which to progress further by creating an enhanced and significant capability in the nuclear sector.”
The transaction with NES represents LDC’s sixth strategic exit in the last 12 months, and follows successful realisations with market leading global provider of safety systems and solutions business Kee Safety; the UK’s largest independent privately-owned vehicle management group Leasedrive; and Benson Group, one of the UK’s largest manufacturers of printed folding carton and sleeve packaging.
In the past 18 months, LDC has invested over £600m of new funding, together with more than £100m of growth capital to support portfolio business acquisitions.
