Mid-market private equity firm LDC has exchanged contracts to sell its stake in Vision Security Group (‘VSG’ or ‘the business’) one of the UK’s leading suppliers of security services, subject to Irish regulatory clearance. The deal provides an attractive return for LDC, which took a significant minority stake in the business in September 2007.
Northampton-based VSG, which offers complete security solutions that encompass manned guarding, electronic security systems, remote monitoring, training, background screening and a range of other support services, has been acquired for £64 million by FTSE 100 listed Compass Group plc.
Since LDC invested in 2007, VSG has outperformed against its competitors and delivered substantial sales and profit growth. Turnover has increased by over 50% to £140 million over the last three years; while employee numbers have also risen considerably from less than 4000 to nearly 6000.
LDC has supported the management team in both their organic and acquisitive growth, in particularly acquiring two electronic security providers, developing their 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”.
VSG was established in March 2000 by the current senior management team, Bill Muskin and the existing senior management team. Going forward, VSG will be a discreet identity 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 that 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”.
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.
ENDS
Issued on behalf of LDC by Golley Slater
Press information: Katie Dale, Golley Slater. Telephone: 0121 384 9743.
Notes to Editors
LDC:
1. LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority.
2. LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK.
3. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
4. LDC invests in a broad range of sectors and has particular experience in financial services, healthcare, industrials, IT & software, leisure & media, retail & consumer, and support services.
5. LDC is the leading private equity company in the UK mid-market. Recent transactions include investments with ADP, AIM, Antler, Omega Red, Cranswick Pet & Aquatics, Evander Group, Nuclear Engineering Services and Orion Media plus exits from Electrium, Aqualux, Cardsave, Paragon Holding Ltd, Steelite International, Avery Weigh-Tronix and Britton Group.
6. LDC has fourteen offices – Aberdeen, Amsterdam, Birmingham, Bristol, Edinburgh, Hong Kong, Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Reading and Southampton.
7. For further information, call John Garner on 0115 9471280 or visit www.ldc.co.uk.