LDC's £30m backing for JHP deal

LDC invested in JHP Group, one of Britain's largest private sector providers of vocational education and skills training, as it was bought by its management team.

The Coventry-based firm, which was set up in 1983, operates 57 centres nationwide, including in Halifax, Hull, Leeds, Sheffield and York. It also provides training in the workplace.

The management team, led by chief executive Jim Chambers, has taken a minority shareholding while LDC has a majority stake. A 26m package of debt was provided by Yorkshire Bank. Now JHP is on the acquisitions path.

Mr Chambers said: "We have delivered significant growth over the past few years as a result of increased commitment in the public and private sectors to tackling employment issues and skills gaps in the UK economy.

"The market in which we operate is consolidating and LDC's investment will allow us to capitalise on potential opportunities to acquire strategically aligned businesses which expand our capabilities or geographical coverage, as well as continuing to grow organically."

JHP has more than more than 3,000 clients, ranging from small and medium sized companies to the Ministry of Defence, RBS Insurance, Royal & Sun Alliance and Barclays. It has more than 1,000 staff and provides apprenticeship and train-to-gain programmes.

The firm has almost doubled sales to 44m over the last three years as demand from the public and private sectors has risen.

The deal was led by John Swarbrick, Alex Bowden and Tony Norwood of LDC in Yorkshire. Mr Swarbrick and Mr Bowden will join the JHP board.

Mr Swarbrick, senior director at LDC in Leeds, said: "In JHP we are backing a socially responsible firm which has excellent prospects for growth thanks to a market-leading position, a highly capable management team, continued demand and an unrivalled reputation for quality of service."

This deal is LDC's first in 2010. Last year it invested more than 200m in businesses with a total enterprise value of over 500m.

Ruth Cherry, director with Yorkshire Bank corporate and structured finance, said; "JHP is an important part of the UK's training and skills infrastructure which is fundamental to the efficient operation of the labour market."

A team of Yorkshire advisors including Deloitte, led by Dan Renton and Paul Trickett, together with Jonathan Jones of Hammonds, advised LDC and due diligence was carried out by PwC and A4e Insight. The vendors were advised by Rothschild and law firm Taylor Wessing provided legal support.

Mr Renton said: "While conditions generally in the economy remain challenging, this deal proves that great businesses with first class management teams remain attractive to investors like LDC who are able to see and focus on real growth opportunities."