LDC backs MBO at Dale Power Solutions
THE management team at a Yorkshire manufacturer have bought the firm in a private equity-backed deal.
LDC has invested £10.5m in return for a “significant stake” in Dale Power Solutions which has been bought from listed business TT electronics.
TT electronics will receive £10m in cash in the deal which also sees debts of £4.7m cleared.
Chief executive Tim Wilkins led the MBO which will see Andy Lydon and John Green, from LDC, join the board and Denzil Lee become chairman.
Mr Wilkins said: “LDC’s investment brings additional strategic input and financial backing to our business and will help us to deliver our ambitious growth plans.
“As well as increasing the pace of organic growth across our core brands, we are keen to pursue appropriate acquisition opportunities both in the UK and internationally and in related product areas.”
Dale Power Solutions manufactures generators at its two factories in Scarborough that are used to provide emergency power to businesses such as hospitals and data centres when mains electricity is lost.
It was first established 75 years ago and operates through the Dale and Erskine brands. Last year it recorded underlying pre-tax profits of £1.8m on revenue of £30.8m.
Martin Draper, LDC’s UK new business managing director, said: “Dale Power Solutions has a leading worldwide reputation through its leading industry brands – Dale and Erskine, both of which are highly regarded and well recognised in their respective markets for their technical expertise.
“Going forward, we will work closely with the team to identify organic and acquisitive opportunities to accelerate growth.”
Gateley gave legal advice to LDC on the deal while Browne Jacobson and Springboard Corporate Finance supported the Dale Power Solutions management team. Deloitte provided financial due diligence.
