LDC strikes on Omega Red sale
BIRMINGHAM based mid-market private equity firm LDC has sold its stake in lightning protection firm Omega Red to Walsall-based utility South Staffordshire plc in an undisclosed deal.
Omega is the UK market leader in lightning protection and electrical earthing systems.
The sale of Omega Red is the third strategic sale completed by LDC Midlands’ team in the last few weeks and forms part of LDC’s strategy to maximise the value of its portfolio.
Nottingham-based Omega Red is the UK market leader in the design, installation and maintenance of electrical earthing and lightning protection systems. Employing more than 220 people across five sites within the UK, the business operates within key vertical markets including rail, power, construction, renewable energy and telecoms.
It has achieved organic sales and profit growth since LDC invested in the business; turnover has increased from £13.5m to £16m in less than three years, while EBITDA has grown from £2.6m to more than £4m. During this time, LDC has worked in partnership with the management team to implement a strategic plan to increase market penetration.
South Staffordshire Plc is a utility services group, which is wholly owned by Alinda Capital Partners, a European and American investor in infrastructure assets. South Staffordshire’s services business operates out of 15 locations across the UK, has more than 1,100 employees, and offers specialist services primarily to other UK water and sewage utilities, Local Authorities, Government Agencies and other major infrastructure owners.
The original investment and ultimate exit from Omega Red was led by John Garner, Investment Director and Head of LDC East Midlands.
He said: “Since our investment in Omega Red, we have worked closely with the management team to deliver strong organic sales and profit growth.”
The transaction was supported by a strong team of local advisors, including Alistair Allen at Rothschilds who acted as lead advisors, while John Heaphy, of Freeth Cartwright in Nottingham provided legal advice to the shareholders. Richard Wrigley, of Martineau in Birmingham acted for South Staffordshire.
