JHP Group, one of the UK’s largest private sector providers of vocational education, skills training and employability programmes, has been bought by its management team in a transaction backed by mid-market private equity firm LDC.
Founded by Hugh Pitman in 1983, Coventry-based JHP operates a national network of 57 centres as well as delivering training in employees’ workplaces nationwide.
The business services more than 3,000 clients, from small and medium sized companies to major organisations such as the Ministry of Defence, RBS Insurance, Royal & Sun Alliance and Barclays.
Led by chief executive officer Jim Chambers, its management team has acquired a minority shareholding while LDC, the private equity division of Lloyds Banking Group, has invested GBP30m for a significant majority stake.
A GBP26m package of senior debt was provided by Yorkshire Bank.
The transaction will enable the company to capitalise on opportunities created by the ongoing consolidation in the skills and training services sector while continuing its organic growth strategy, particularly the increasing emphasis on welfare to work programmes.
Chambers says: “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.
“The investment comes at an important stage in our development and will bring on board the expertise and financial backing we need to grow the business further.”
The transaction was led by John Swarbrick (pictured), Alex Bowden and Tony Norwood of LDC. Swarbrick and Bowden will join the JHP board.
Swarbrick, senior director at LDC in Leeds, says: “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 transaction is consistent with our strategy of focused, through the cycle investment in commercial enterprises which are benefiting the UK economy.
This deal is LDC’s first in 2010 and follows on from a busy 2009 which saw LDC invest over GBP200m in businesses with a total enterprise value in excess of GBP500m.
