Case Studies

Case Study: Electrum

The Company:

Electrium is one of the UK’s leading independent electrical groups specialising in domestic circuit protection and electrical wiring accessories, offering a complete range of low voltage installation products, from a switched socket to the main switchgear in an industrial installation.

Added Value:

  • In 2003 LDC invested £11m in the £38m management buyout, the deal completed with LDC knowing that it had a great management team and secure future
  • LDC appointed experience Non-Executive Director to the Board
  • The management team recruited a new marketing team to focus entirely on future strategies
  • LDC worked closely with the management team to implement a strategy focusing on the key growth drivers within the various sectors, such as new build, public sector and industrial markets
  • In a difficult and challenging market, Electrium constantly out performed the what was a benign UK economy

Outcomes:

  • In 2005 Electrium was sold to German electrical giant Siemens AG for an undisclosed sum in one of the largest exits completed by LDC in the Midlands region
  • This exit by LDC resulted in an excellent money multiple return of circa 5x, and produced an IRR in excess of 100%
  • The exit of Electrium to Siemens was also shortlisted for the Birmingham Post’s prestigious ‘Deal of the Year’
“This is a prime example of how LDC is committed to working with great management teams to evolve and develop businesses. Not only is this one of our most successful exits but this deal demonstrates LDC and Birmingham’s financial communities ability to execute complicated international deals locally.”
Martin Draper, LDC

Highlights:

  • £38m MBO
  • Backed high calibre management team
  • New Marketing team
  • Appointment of NED
  • Money Multiple 5x
  • >100% IRR