LDC, the private equity arm of the Lloyds Banking Group, has invested an additional GBP8.3m into Microlease, a European provider of rental and asset management services to the test equi
LDC, the private equity arm of the Lloyds Banking Group, has invested an additional GBP8.3m into Microlease, a European provider of rental and asset management services to the test equipment market.
LDC backed a GBP30m management buyout led by chief executive Nigel Brown in 2006 and the business has grown rapidly since then, fuelled by new customers won and growth in adjacent services.
The additional funding by LDC is designed to finance strong organic growth combined with possible acquisitions over the next 24 months to take advantage of opportunities arising from the current market conditions.
Microlease offers a broad range of services to the test and measurement market, including rental, leasing and sale of test equipment as well as calibration and asset management services. As global economic conditions have worsened Microlease has seen an increase in demand for rental and leasing services from companies that are looking to reduce capital expenditure on equipment.
Microlease is based in the UK and operates across Europe, Africa and the Middle East as well as in the Americas. LDC has worked closely with Brown since the MBO to develop a strategic plan which combines organic growth with an acquisition strategy targeting complimentary businesses. LDC is proactively looking to provide additional capital to its investee companies to help create step changes in growth at a time when competitors may be cash constrained.
Brown says: ‘LDC’s strategic input and close partnership with the management team has been critical to the formulation of an exciting growth plan which will see Microlease increase its ability to support its key customers and suppliers over the coming years. LDC’s desire to expand our business at a time when other players are retrenching is a strong vote of confidence for the business and the team.’
Yann Souillard (pictured), director at LDC, says: ‘This is a good example of LDC’s attitude to value creation in a market downturn. Our flexible funding allows us to increase our investment in a high performing business to help the management team drive a lasting step change in the company’s market position. Microlease has performed extremely well since the MBO and our additional funding underlines our enthusiasm for backing a great team to deliver growth above and beyond our original plan.’
