Mid-market private equity firm LDC has funded the acquisition of US based MetricTest for portfolio company Microlease, the international provider of rental and asset management services to the test equipment market.
LDC originally backed the GBP30m management buyout of Microlease in 2006, investing a further GBP8.3m in 2009 to provide further capital to support a programme of acquisitions and continued organic growth.
The business subsequently acquired rental specialist Telogy International NV in 2009, making Microlease the largest provider of its kind in Europe with the most comprehensive portfolio of services, followed by Hamilton Hall Consultants earlier this year to expand its asset management offering.
This latest acquisition of MetricTest, which is expected to take the group’s US revenues to USD90m next year, makes Microlease the third largest test equipment rental business in the strategically important Americas markets.
The deal was funded by Microlease’s cash reserves and a further injection of equity by LDC, with additional debt facilities provided by Comercia Bank in the US.
Microlease offers a wide range of services to the test and measurement market, including the rental, leasing and sale of test equipment alongside calibration and asset management services. Its services help customers reduce their capital expenditure on equipment while ensuring optimum utilisation rates of assets they currently own.
Based in the UK, the business operates across Europe, Africa, the Middle East and the Americas, servicing customers across a range of sectors including telecoms, defence and aerospace.
Since 2006, revenues at the group have increased from GBP17m to a projected GBP75m for the current financial year, while profits (ebitda) have increased fourfold from GBP5m to GBP20m during the same period. The number of employees has also grown from 86 to 223 in five years.
Yann Souillard (pictured), Managing Director of LDC, says: “This is strategic step change for Microlease, which significantly accelerates its growth in the world’s biggest market. It also enables the business to provide truly global coverage for its expanding customer base. This unique positioning will support the development of further strategic partnerships with suppliers and customers worldwide.”
He adds: “Our support for Microlease over the last five years demonstrates our approach to building value in our portfolio companies through the economic cycle. This is driven by supporting a high rate of organic growth, through investment in services, sales and marketing, alongside a programme of strategic acquisitions to add scale and depth of service.”
Nigel Brown, CEO of Microlease, says: “We are delighted to announce the successful acquisition of MetricTest, a well-respected US-based firm with an excellent reputation for service delivery.
“The two companies are an excellent match and have many shared positive attributes, including a high standard of engineering competence amongst the sales force. We believe this latest acquisition will form an important part of our continued commitment to meet growing demand for cost-effective test equipment and services globally.”
