PRIVATE EQUITY house LDC has backed the secondary buyout of Adler and Allan, the £60m-turnover oil and environmental services business.
The Harrogate-based company employs more than 450 people and serves the power, utility, telecoms, corporate and on-shore oil and gas sectors through a network of 24 depots across the UK.
LDC, part of Lloyds Bank, said it has taken “a significant minority stake” in A&A for an undisclosed sum, with the backing of senior debt facilities from HSBC.
It said the investment will support the organic growth of the business and the development of its existing products and services and deliver funds for “opportunistic” acquisitions.
The transaction provides an exit to Spirit Capital, which invested in the business in 2007 as Aberdeen Asset Managers Private Equity.
A&A has made a number of bolt-on acquisitions to expand its proposition.
In 2009, the group snapped up E&S Environmental Services and in 2011 added AJ Bayliss Petroleum Engineers.
Mark Calvert, managing director, said: “Since 2005, Adler and Allan has experienced a significant transformation and expanded to cover a range of integrated and vital environmental services to corporates.
“The financial and strategic support from LDC will enable us to drive further investment into our product development and nationwide depot network as we look to capitalise on a resurgent industrial sector and economy and take our business forward.”
John Garner, head of LDC in Yorkshire and the North East, will join the board at A&A.
He said the deal will provide the firm with the financial firepower “to continue its impressive growth in a developed and growing market”.
Deal advisors included Rothschild, Walker Morris, KPMG and Squires Sanders.