Hero Ites, part of Hero Group and with facilities in Delhi, will merge the two businesses to create a leading international player in inbound and outbound contact centre solutions with a range of UK and overseas facilities.

The deal will enable the merged business – called TSC Hero to offer new and existing customers a multisite solution, thereby increasing its market potential and continued growth prospects in its core markets of Europe, Asia and the US.
Under the terms of the deal, TSC’s management – led by Ken Hills will retain a shareholding, and manage the newly formed company.

LDC backed the business in 2003 with a significant equity investment, providing a catalyst for a period of significant expansion. During the partnership, the business has increased its headcount from 2,000 to over 3,000 and the number of facilities from five to nine, following the opening of its 500strong facility in Kilmarnock earlier this year. Turnover has also grown from £29million to over £60million.

Customers now include major international organisations such as Vodafone, TMobile, HewlettPackard, HBOS and HSBC. Commenting on the transaction, Andrew McMurray, Director at LDC, said: "Extension of its capabilities to India is the next natural step for TSC. As leading investors in UK business development and growth, we are proud to have supported TSC and its excellent team during the last four years when it has developed into a leading UK player and we believe that with the creation of TSC Hero, the company will enjoy even greater success both in the UK and abroad."

Ken Hills, Chief Executive Officer of TSC, said: “The new arrangements bring even more financial muscle and will allow TSC Hero to compete on a global basis. It gives us access to facilities and capital that will let us turn a successful Scottish business into a global one.” The deal represents the latest of five exits made by LDC so far this year, which have included the £160million sale of Jamella Group (trading under the ghd brand of hair styling products) to Montagu Private Equity, and the £410million sale of property services company Apollo Group to Bank of Scotland Corporate. The firm also exited its investment in kitchen and bathroom distributor PJH Group through a sale to Taiwan based Globe Union, following several further disposals in 2006 to international corporate buyers.

LDC notes to Editors:

LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority. LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK. 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. 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.