MBO unveiled at Benson Group
Leicestershire manufacturer Benson Group has undergone a management buyout (MBO) backed by private equity provider LDC. The £95m-turnover company said the undisclosed deal, using money from LDC's £200m manufacturing fund, would "provide a foundation for future growth".
Benson Group is one of the UK's largest manufacturers of printed folding carton and sleeve packaging.
LDC's Midlands team injected a "significant investment" into Benson Group in its second transaction using the £200m manufacturing and specialist engineering fund.
The deal with the Nottingham office of LDC has led to the exit of the two principal Benson family shareholders from the business. The new management team is now preparing to launch its growth strategy, said LDC.
Benson Group employs more than 900 staff and operates from its head office in Bardon, Leicestershire. It also operates manufacturing sites in Newcastle, Gateshead and Crewe. In 2010, the company's turnover exceeded £95m.
The deal was led by investment director Andy Grove. He and Martin Draper, LDC’s UK new business managing director, will both join the board with immediate effect.
Mark Kerridge managing director of Benson Group, said: "LDC's investment and support for Benson Group will help the company realise our growth ambitions. It will further strengthen our market leading position, provide a foundation for future growth, and ensure that we maintain a high quality service for our customers."
Grove added: “In Benson Group, we are partnering with a high-quality management team and a market-leading business which has a strong platform from which to generate further growth. Going forward, we will work closely with the business to identify acquisition opportunities in order to help accelerate growth.
Lloyds Bank Corporate Markets’ acquisition finance team (Paul Whitehouse, Andy Taylor and Martin Cordey) and HSBC Leveraged Finance Midlands team (Stuart Grantham and Andy Payne) jointly provided a package of senior debt and revolving credit facilities to support the transaction.
Whitehouse said: "Benson Group has a highly experienced management team, strong growth track record and best-in-class manufacturing facilities, which position the business to continue its expansion with the backing of LDC."
Originally established in the 1920s by the Benson family, Benson Group has been led by existing managing director Mark Kerridge since 2002 and has grown in recent years following a mix of strategic acquisitions, organic growth and investment into all of its manufacturing facilities.
The investment from LDC is the second from its £200m specialist engineering and manufacturing initiative. Its first was announced last week, an undisclosed deal with Castle Donington-based engineering company PJD Group.
