Mid-market private equity firm LDC has sold its stake in Kylmar, an industry leader in the design and manufacture of sensor and optical surveillance systems for military and security applications.
The Andover-based company has been acquired for an undisclosed sum by General Dynamics United Kingdom Limited, a business unit of General Dynamics (NYSE: GD).
The deal provides an attractive return for LDC, which took a significant minority stake in the business in April 2006.
Since then, the business’ turnover has doubled and employee numbers have risen from 30 to 50.
Kevan Leggett, managing director of LDC in the South, said: “Kylmar is a perfect example of a private equity-backed UK manufacturing firm which has combined its technical capabilities and strong customer relationships with our funding and strategic input to create a highly attractive asset.
“We’ve thoroughly enjoyed working with management over the past four years to successfully generate scale in the business and this acquisition represents an excellent outcome for its employees and customers.”
Kylmar has been supplying electro-optic equipment and systems into the UK military intelligence and Special Forces for counter-terrorism applications for nearly two decades.
From its inception, the company has specialised in the design and manufacture of highly capable electro-optical systems deployed for long periods of time, often operating in harsh environments, where high reliability is essential to successful outcomes.
ENDS 28 June 2010
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Notes to editors:
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 and 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 1ST – The Exchange, Ansa / Independent Inspections, Evander Group, Cranswick Pet & Aquatics, Modelzone, Nuclear Engineering Services Limited, Quantum Specials, and Snell Limited.
6. LDC has fourteen offices – Aberdeen, Amsterdam, Birmingham, Bristol, Edinburgh, Hong Kong, Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Reading and Southampton.