LDC backs growth of heating systems specialist ADEY

LDC has backed the management buyout of ADEY, Europe’s largest water treatment manufacturer serving the domestic and commercial heating sectors.

ADEY, which is headquartered in Cheltenham, is unique in offering the market a ‘total system solution’ through a family of products designed to clean, flush, maintain,  protect and test residential and commercial heating systems. Its range helps improve efficiency and longevity, whilst reducing energy consumption and maintenance bills.

Its MagnaClean® range of magnetic filters was the first product of its kind in the market, removing magnetic and non-magnetic debris that can build up in heating systems preventing optimum performance.

ADEY’s customer base includes national and independent merchant chains, heating installers and engineers, housebuilders, housing associations, major heating contractors and leading boiler and pump manufacturers.

Currently supplying its products in the UK and mainland Europe, ADEY plans to expand into new geographies including US, Asia and Eastern Europe, as well as investing in new product development to further consolidate its market leading position.

In its last financial year, ADEY generated almost £46million revenue which is expected to increase in line with growing consumer demand for sustainable, cost effective heating solutions.

The MBO was led by Chief Executive Officer John Vaughan, with LDC Investment Director Alistair Pendleton joining the board as Non-Executive Director.

Commenting on the deal, CEO of ADEY, John Vaughan, said, “LDC’s investment marks the next chapter in our growth journey and will help us achieve our goal of providing our customers around the world with the best possible preventative solutions in the heating systems market.

“As well as providing the capital to invest, it also brings additional strategic input and operational expertise to help us make the most of growing global demand.”

Alistair Pendleton, Director of LDC in the South West & Wales, said: “There has been a shift in consumer conscience, as people have become increasingly aware of more energy efficient and cost effective ways of running their homes and organisations. With this momentum looking set to increase there is no better time to push the button on ADEY’s expansion plans. >

“In ADEY, we are backing a business that is at the forefront of its industry and has already proven its ability to innovate and scale internationally. With the additional backing of LDC combined with its ambitious management team, it is an exciting opportunity to accelerate the growth of the business and further drive its already impressive market position.”

LDC’s legal advisor was Osborne Clarke, lead advisors were KPMG and RSM, all based in Bristol.  KPMG also provided tax structuring and financial due diligence whilst management was advised by Isca Ventures and Squire Patton Boggs (Birmingham). Deloitte’s South and Wales team and Squire Patton Boggs (London) advised the vendors.

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.