Mid-market private equity firm LDC has exited its investment in Volvox Group, a leading supplier of auto electrical products and industrial consumables – through a sale to Elysian Capital.
Volvox, which is headquartered in Leeds, designs, sources and distributes a wide range of innovative products for the private and commercial vehicle markets, including lighting, camera systems, car accessories, air compressor, portable power products and industrial consumables. Its customers include vehicle manufacturers as well as the UK and European after-market, where it suppliers major retailers and distributors.
LDC originally backed the GBP12million management buyout of Volvox in 2005 with a GBP5million investment to expand its product offering, scale up its warehousing and distribution facilities and drive overseas sales.
During the last six years, turnover has risen 60 per cent from GBP25million to GBP40million in its latest full financial year, Exports have grown from less than GBP2million to GBP8million per annum during the same period.
Soon after LDC’s investment, the business also opened a new 60,000 sq ft facility doubling its capacity, enabling it to expand its product range. The business has also grown headcount significantly in the last six years during LDC’s ownership.
John Swarbrick (pictured), Senior Director of LDC, says: “The team at Volvox has made enormous progress over the last six years, bringing scale and sophistication to its supply chain management, expanding its international reach to secure new growth and continuing to innovate the market with new product development. This is clearly demonstrated by its financial performance, which is testament to the management team’s ambition, vision and determination.
“This is a perfect example of how our private equity model can unlock potential within a business through strategic, financial and operational support in order to create significant shareholder value.”
John Hall, CEO of Volvox Group, says: “LDC has been a critical ingredient in our success over the last six years. The financial support, expert guidance, board room challenge and commercial opportunities they’ve provided have enabled us to transform Volvox Group into an international leader in our field, setting the scene for our next phase of growth with Elysian Capital. LDC’s partnership approach – based on supporting management’s objectives to accelerate growth – has made this an enjoyable and rewarding journey for our people and our customers.”
Lloyds Bank Corporate Markets Acquisition Finance provided debt funding to support the Elysian deal.
Rob Lawrence, Director at Lloyds Bank Corporate Markets Acquisition Finance, says: “The business’ performance has remained highly robust throughout the downturn and during LDC’s ownership, and is a great example of a successful company that has grown through PE tenure. We are proud to be supporting the firm in the next phase of its growth cycle following Elysian’s investment.”
The sale process was handled by Deloitte by a team including Paul Trickett, Dan Renton and Barry Jackson.
Squire Sanders Hammonds, led by Jonathan Jones and Paul Mann, provided legal advice to the shareholders and the MBO team. Jim Whittaker provided management advice to MBO team.
Elysian was advised by Robin Skelton of Eversheds with Christian Mayo and Phil Abram of KPMG providing due diligence services. Lloyds Bank Corporate Markets was advised by Phil Scott at Pinsent Masons.
