Leading investor urges Midlands businesses to be bold and go for growth

LDC reports revenue growth of 15% across its Midlands portfolio of companies, and encourages business leaders to ‘think big’ to realise their true potential

Leading private equity investor LDC, whose investments include NEC Group and Kee Safety, said its portfolio of companies grew total sales by 15 per cent in 2016, which it said reflected the ‘outstanding potential’ of the region’s leading mid-market businesses.

The firm, which has a portfolio of 24 companies that are responsible for revenues of £2.2billion and more than 20,000 jobs across the region, also encouraged business leaders to ‘think big’ in developing their future growth ambitions.

LDC in the Midlands, which has well-established teams in Birmingham and Nottingham, has invested more than £320million of equity over the last three years. In 2016, investments included the £175million secondary buyout of CitySprint, the UK’s leading same day distribution company, the £17million management buyout of Panther Logistics, the UK’s largest independent two-man next day home delivery provider, and the management buyout of TXM Plant, the UK’s largest supplier of specialist operated plant to the rail sector.

Other portfolio companies backed by LDC in the Midlands include leading IT services and software provider Centiq, holiday park operator Away Resorts and The Pallet Network, one of the UK’s leading palletised freight distribution networks.

Last year, LDC also exited several successful investments. These included the sale of consumer goods business, Original Additions, to US-based beauty and personal care company PDC Brands in April, and the £140million listing on the AIM market of Joules, the premium British lifestyle brand, which raised gross proceeds of approximately £77.5million in May. In the same month LDC completed the sale of Orion Media, the commercial radio group, to Bauer Media and in October, Node4, the IT solutions provider, went through a secondary management buyout backed by Bowmark Capital.

Nationally, LDC has pledged to invest £1.2billion of capital over the next three years to accelerate the growth of Britain’s mid-sized businesses, with the Midlands a major focus.

Andy Lyndon, Head of Midlands, LDC said: “Collectively, the management teams we’ve backed in recent years delivered an outstanding performance in 2016 despite a challenging economic backdrop. This reflects the ambition, calibre and determination of the leaders, and the quality of their businesses. The Midlands needs more companies to be bold and go for growth, in turn helping the regional economy continue to accelerate its growth.”  

John Green, Head of East Midlands, LDC added: “It’s important that LDC, as a major investor in the region, ensures management teams know that the financial and strategic support is there to back them in their ambitions. Our goal for 2017 is to identify and partner with more management teams to help them think big, maximise their growth potential and build the market leading businesses of the future.”

With offices in both Birmingham and Nottingham, LDC has cemented its position as the leading private equity firm in the region over the last three decades. Andy Lyndon leads the 14-strong and experienced LDC team across the Midlands.

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.