LDC has £500m target to invest in UK manufacturers
PRIVATE equity provider LDC has pledged to invest a further £200m in UK based manufacturing and engineering businesses by the end of next year.
The move by the mid market private equity group comes following its £250m investment in the sector in the last two years.
LDC claims the move will see it commit up to £500m in investments by 2015 since it focused on the sector in 2011.
It said it will continue to focus on firms with specialist manufacturing capabilities across a wide range of niche industrial sectors such as aerospace, power generation and oil and gas, and will be open to all UK mid-market businesses in the £10m to £150m enterprise value range.
The move comes after LDC enjoyed a successful year in the industrials sector, completing seven new investment transactions into manufacturing and specialist engineering businesses in 2013, whilst also realising capital gains of over £95m from the sector.
In the North of England, this included the investment in Haydock-based ATG Access, the global leader in high security barrier systems, the £62m management buyout of firefighting products manufacturer Angus Fire in Bentham, near Lancaster, and its investment in Gateshead-based precision engineering firm, Express Engineering. Activity also included the strategic exit from Burnley-based aerospace engineering group MB Aerospace.
LDC’s interest in the sector encompasses businesses located right across the UK and the initiative is led by Ged Gould in the North West and Joe Farren in Yorkshire and the North East.
Former head of UK corporate development at Sheffield-based building products supplier, SIG, Joe Farren, who is now an investment director at LDC in Yorkshire and the North East, said: “Throughout its 30 year history, LDC has committed more capital to the UK manufacturing sector than any other mid-market PE house, reflecting our strong connection with, and on-going drive to, provide financial and strategic backing to growing mid-market businesses operating in this space.
“UK manufacturing enjoyed further sustained growth in 2013, with the latest CBI Industrial Trends Survey reporting that the size of total order books and the pace of output growth in the sector for the past three months to December 2013 were the highest recorded since 1995. This on-going improvement in trading conditions represents a sound opportunity for manufacturers and we want to support these businesses in delivering their growth objectives.”
