The Yorkshire team of the UK’s leading mid-market private equity firm LDC has delivered three significant transactions in one week during August, with a combined enterprise value of more than £415m.
Dan Smith, Head of LDC in Yorkshire, said that the team’s recent activity is testament to the quality of businesses and the corporate finance community across the region and the resilience business leaders have demonstrated over the past 18 months.
LDC’s team, based in Leeds, exited its investment in Knaresborough-headquartered Pelsis Group in early August, having originally backed the pest control products manufacturer in 2017. During the partnership, Pelsis more than doubled its headcount to 600 people, increased global sales from €87m to €150m and extended its global footprint by making three international acquisitions.
The private equity firm also found a new home for Leeds-headquartered Sigmat, which has joined international building products group Etex. Sigmat is the UK’s market leader in light-gauge steel framing technology, a more sustainable method of construction. LDC supported Sigmat’s organic growth strategy, helping the business to invest heavily in research and development.
The firm expanded its product range, opened a state of the art 100,000 sq ft production facility, as well as a new 25,000 sq ft Contract Support Centre in Leeds. It also shifted its approach to support its goal of becoming carbon neutral by 2035.
The latest exits provide further evidence of the positive impact private equity partnership can have towards helping management teams to realise their growth plans.
In terms of new investments, LDC supported the management buyout Texecom, a leading manufacturer of electronic security products and services, backing the leadership team to carve the business out from its previous FTSE-100 listed owner. With LDC’s support the £33million turnover firm will build on its market-leading position and international presence, enhance its digital services and explore complementary acquisitions.
LDC has worked closely with its portfolio company management teams throughout the pandemic to provide the necessary resources to help strengthen and position their businesses for future growth. In the first half of 2021, LDC supported its portfolio companies across the UK to make more than 35 acquisitions.
LDC-backed national lettings and estate agency group Lomond Capital, which merged with Leeds-headquartered Linley & Simpson at the start of 2021, has completed more than 15 acquisitions this year, strengthening its geographic footprint and significantly increasing its portfolio of properties.
The team has also supported York-based outsourcing provider Mosaic Fulfilment Solutions to acquire logistics, warehousing and fulfilment firm Thorn 3PL Services. The transaction has expanded the business’ footprint and offering across the North and is now paving the way for future growth and development.
Dan Smith, Head of LDC in Yorkshire, said: “This flurry of transactions evidence both the opportunities available for ambitious management teams across Yorkshire and the fact that private equity can support growth.
“As the UK economy continues to recover, we’re seeing increased confidence from business leaders. Management teams are beginning to explore bold expansions plans again, whether that’s acquiring a competitor, investing in a new site or even pursuing international expansion. As the region’s leading mid-market investor, we are ready to help make their ambitions a reality.”
Having strengthened the team with the appointment of Investment Director Will Scales at the start of the year, LDC’s Yorkshire team is continuing to grow to further enhance its support for businesses across the region.