Leading private equity provider LDC has today announced that it will commit £200million of new investment to specialist engineering and manufacturing businesses over the next three years, reflecting its continuing commitment to the sector.
The announcement forms part of LDC’s wider strategy to invest £2billion over the next five years in SMEs.
Specialist engineering and manufacturing remains one of the UK’s most dynamic industry sectors with UK businesses proving resilient through the recent economic downturn and benefitting from demand from emerging economies.
The £200million commitment will focus on mid-market UK businesses in the £10million to £150million enterprise value range and, typically those with specialist manufacturing capability in niche sectors such as aerospace and defence, oil and gas, or power generation.
LDC has proven experience in the sector, having completed over 125 transactions in its 30 year history across a number of economic cycles. LDC’s existing investments in this sector account for more than 20 per cent (by volume) of the portfolio and over £250million of investment.
The initiative will be led out of LDC’s Birmingham office by investment directors Steve Aston and Rob Schofield, along with Richard Stewart from LDC's Reading office, all of whom have extensive experience of investing in and working alongside companies in this sector.
The initiative will also be supported by LDC’s Asian operation, which is based in Hong Kong. Established in 2008, the Hong Kong office will play a significant role in this investment commitment, given its relationships with many manufacturing and supply-chain businesses located in high-growth Asian economies.
LDC has an impressive and extensive track record of supporting manufacturing and industrial businesses and has continued to invest in this area throughout recent economic downturns. The existing investment portfolio includes A-Gas, a leading provider of specialist industrial gases and chemicals; AIM Aviation, a global leader in the design and manufacture of premium cabin interiors for commercial airlines, MB Aerospace which specialises in the design, manufacture, test and assembly of defence and commercial aerospace systems and components; and Epi-V investing in emerging technology within the upstream oil and gas services sector.
Martin Draper, Managing Director LDC Midlands commented:
“LDC is committed to supporting the growth of high quality specialist engineering businesses. Many UK businesses have developed best in class manufacturing technology and capability and are extremely well placed to deliver strong and sustainable growth across both the established and emerging growth economies.
“By pledging £200million of capital and a dedicated and experienced team over the next three years to this important sector, LDC is demonstrating a clear commitment to, and confidence in, UK manufacturing.”
Darryl Eales, Chief Executive, LDC added:
“Although LDC is a generalist private equity investor, the industrial and specialist engineering arena has long been part of our heritage. We have consistently invested in the sector, even when it has been unfashionable to do so.
Despite the current economic challenges, we regard the sector as highly attractive and, its success remains central to wealth creation to UK plc.
“The £200m commitment is real and we look forward to partnering with high quality teams with ambitious growth plans for their business.”
For further information about this initiative contact LDC at email@example.com