Mid-market private equity investor LDC has backed the management buyout of Stuart Turner, a UK-based water pump and pressure solutions business.
The investment will enable Stuart Turner to accelerate its buy-and-build strategy, targeting further growth in the commercial pumps sector, in addition to supporting international expansion.
Founded in 1906, with strong heritage in engineering excellence and product innovation, Stuart Turner has an established reputation for high-quality products for the commercial and domestic markets, including a patented solution for mains water pressure issues. Stuart Turner is led by CEO Mark Williams and Financial Director Malcolm Harris, and employs more than 100 people. The business has achieved significant growth over the past six years generating turnover of over GBP22 million for the financial year ending September 2016.
Following LDC’s investment, Stuart Turner plans to accelerate its targeted acquisition strategy in the commercial pump sector and adjacent product categories. This follows the business’ acquisition of two leading UK pump manufacturers, TWS and Allan Aqua, in the last two years.
Mark Williams, CEO of Stuart Turner, says: “LDC recognised the growth potential of the business and immediately bought into the existing buy & build acquisition strategy. Importantly, they also saw the opportunities presented by new product introductions and further geographical expansion.
“Partnering with a like-minded investor that not only has a strong track record in our sector, but is able to bring additional non-exec expertise on board, was extremely important to us. We’re looking forward to embarking on the next phase of our growth journey with LDC.”
The deal, which will enable existing shareholders to exit the business, was led by Matt Newbold, Investment Director, and Andy Lyndon, Head of LDC in the Midlands. Steve Lee will move from his current non-executive director role where he has supported the business for six years to become non-executive Chairman.
In addition, Duncan Cooper, former regional managing director at Grundfos, one of the world’s leading pump manufacturers, has also been appointed as non-executive director. He brings more than 20 years’ experience, having led Grundfos’ operations in Europe, Africa and the Americas.
Andy Lyndon, Head of LDC in the Midlands, adds: “Mark and the team have built a fantastic business over the years, and through a commitment to product innovation it consistently delivers market leading solutions to customers in both the commercial and domestic pump markets. Its recent acquisitions are a clear indicator of the management team’s ambition and with the company’s technical capabilities and strong customer base, Stuart Turner is well placed to further strengthen its market leading position both at home and overseas.”
The deal marks the fifth investment of 2017 for LDC in the Midlands and follows a deal with Addo Food Group, the UK’s leading chilled savoury pastry producer and the exit of A-Gas to KKR.
LDC was advised on the deal by the Birmingham team at Eversheds and Clearwater, with the shareholders advised by Orbis Partners and Gateley.
Chris Gregory, Partner at Orbis Partners, says: “Having acted as a trusted advisor to Stuart Turner through a number of acquisitions it was essential for us to identify an investor and partner that would not only strategically value the business, but continue to invest in the established platform. We feel that LDC offers the right experience to continue the business’ impressive growth and further develop into new areas under the leadership of its experienced management team.”
Due diligence was provided by KPMG and CIL.
Debt facilities were provided by Barings and RBS.
