LDC backs £42million MBO of leading manufacturer Eley Group from IMI plc

LDC has completed a significant investment to support the £42million management buyout and continued growth of leading Midlands’ manufacturer Eley Group, from Birmingham-headquartered global engineering business IMI plc.

Based in Sutton Coldfield, near Birmingham, Eley Group comprises two trading subsidiaries; Eley Limited (which includes Eley Americas Inc.) and Accles & Shelvoke. 

Founded in 1828, Eley is the world’s leading manufacturer of .22LR rounds for the target shooting market. With an industry leading reputation for unrivalled accuracy, Eley’s products are used in target shooting by Olympic standard athletes at all major global tournaments. A significant majority of medals secured at major shooting events, such as the London 2012 Olympic Games, were won by shooters using Eley Tenex - the premium product in the range. 

The Eley Group has delivered significant growth in recent years, as a result of on-going product development, alongside increasing demand from a growing global customer base for its superior quality products, particularly in the UK and USA. The deal with LDC will provide further capital to help accelerate the continuing growth of Eley Group, primarily through new product ranges and further penetration of the global marketplace. 

The Eley Group currently employs more than 120 people, and in 2014 is forecast to generate turnover of £17million and EBITDA of £6.1million.

LDC has backed Eley Group’s existing management team led by Managing Director Andrew Lane. The deal was transacted by LDC’s Birmingham team, led by Andy Lyndon, alongside Investment Directors Chris Handy, Matt Newbold, and Ben Snow. Chris Handy and Matt Newbold will both join the board as Non-Executive Directors with immediate effect.

Commenting on the investment, LDC’s Chief Executive Officer, Martin Draper said: “Eley Group comprises well-established market leading businesses that have unrivalled reputations in their own distinct sectors. Growth is being driven by consistent demand for high-quality target shooting rounds on a global scale, with the Eley product range firmly established as the number one choice in the international competitive shooting space.

 “We are partnering with a high-quality management team led by Andrew Lane, and will be working closely with them to accelerate the next phase of growth and expansion both here in the UK and internationally.”

Andrew Lane, Managing Director of Eley Group said: “LDC’s investment reflects the confidence that both parties have in Eley Group’s future growth potential.

"Looking forward, LDC’s support will allow us to strengthen our market leading position, invest for future growth and accelerate expansion into new geographic territories. We will also continue to maintain a firm focus on the manufacture and supply of quality products for growing our customer base, both here in the UK and overseas.”

The deal was completed by LDC with support from a number of Midlands-based advisers including Wragge Lawrence Graham & Co who acted as legal adviser to LDC, and PwC Corporate Finance who acted for the vendor.

The deal with Eley Group forms part of LDC’s on-going strategy to invest in leading mid-market businesses, backing high calibre management teams.

The transaction was completed using capital from LDC’s £550million manufacturing and specialist engineering commitment that was launched in 2011. The initiative focuses on supporting businesses with specialist manufacturing capabilities across a range of niche sectors including power generation, aerospace, defence and oil and gas.

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.