LDC backs MBO of PAW Holdings

Leading mid-market private equity investor LDC has backed the management buyout of PAW Holdings Limited ("PAW") to support the company's growth strategy.

Founded by Alan Walker in 2001, PAW is the UK market leader in the design, manufacture and installation of pre-engineered light gauge building systems. Headquartered in Skipton, North Yorkshire, the business has successfully built a reputation for innovation, technical expertise and reliability, and is recognised as the UK's leading specialist in the market.

For the current financial year, the business is on track to achieve revenues of £23million, which has grown strongly in recent years on the back of increasing demand for PAW's specialist service. The business employs more than 80 people across its sites which include locations in Skipton, Brighouse, Evesham and Glasgow.

Following LDC's investment, the management team plans to further invest in its manufacturing capabilities and service offering, enabling PAW to continue to meet the demands of its key clients.

The MBO was led by CEO Roger French, construction director Paul Smith, commercial director James Walker and technical director Andrew Walker. Founder, Alan Walker also remains a director and board member at the company.

The transaction was led by Dale Alderson, Dan Smith and John Garner at LDC in Leeds. Dale will join the board as a non-executive director.

Commenting on the deal, Roger French said: “Our partnership with LDC marks the next phase of the business’s growth strategy, and I’m pleased that we have a partner that not only shares our vision and ambition but also has the knowledge and experience to help us reach that next level.”

Founder Alan Walker added: “We have a fantastic management team in place at PAW. With LDC’s investment and support the business has the firepower it needs to develop our offering further and scale the company. It’s not only an exciting time for management, but for our employees, customers and partners too.”

Dale Alderson, Investment Director at LDC, commented: “PAW is a high quality business built on specialist technical know-how and customer focus. PAW recognised a gap in the market and developed a product and service that meets customers’ exact requirements, at every stage of the build process. We are delighted to support the business during its next stage of growth and development.”

PAW was advised by Paul Thompson and Cameron Varley at Camlee Group, alongside legal advice from Ian Gilbert at Walker Morris. LDC was advised by a team led by Richard Goldsack at Grant Thornton and Garry Elliott at Addleshaw Goddard. Financial Due Diligence was undertaken by Will Oxley at PwC, with Commercial Due Diligence completed by CiL.  

This is the third deal for LDC in Yorkshire and the North East this year, and follows the MBO of Zyro-Fisher and the £16.5million investment in games developer Team17.

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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.