Midland private equity provider LDC has agreed a multi-million pound investment into mechanical engineering specialist PJD Group.
The transaction represents LDC’s first deal completion using capital from its recently launched £200 million manufacturing and specialist engineering commitment - an initiative focused on supporting businesses with specialist manufacturing capabilities across a range of niche sectors including power generation, aerospace, defence and oil and gas.
Castle Donington-based PJD Group counts Rugeley Power Station among its customers and provides a wide range of repair, maintenance, manufacturing, upgrade and installation services across the power, environmental and industrial markets and employs over 250 full time staff.
LDC said the deal further underpins its commitment to provide growth capital funding to support locally-based, high-growth businesses operating within the UK mid-market.
The deal was led by LDC director John Garner, who will join the PJD board, and investment director Matthew Norrington. John Garner will join the board with immediate effect.
Mr Garner said: “In PJD, we are backing a market leading business which is well placed within each of its key sectors to deliver strong organic and acquisitive growth.
“LDC is fully committed to supporting the growth and expansion of our portfolio companies and by working closely alongside PJD’s highly experienced management team we intend to target strategic acquisitions to help accelerate the company’s growth prospects in existing and new market sectors.”
The company is focused on three key areas - PJD Power, which provides services to the coal, gas and nuclear power and plants sectors; PJD Environmental, which provides services to the emerging renewable energy industry and biomass generation; and Grayton Engineering, which operates within the cement, chemical, refineries and steel industries.
LDC is backing PJD’s existing management team, which is led by chief executive David Hayle. PJD’s founder Peter Douglas will remain as a non-executive director.
Mr Hayle added: “The replacement energy market is worth £110 billion over the next 10 years, so it was important for us to find the right strategic investment partner in LDC. We look forward to the financial and strategic support that their investment will bring to our business.
“This transaction will help to underpin our overall growth and development strategy as we actively seek to acquire businesses that will complement and enhance our existing service proposition.”
HSBC Corporate and Structured Banking continue to provide debt funding to PJD following on from their support for the original management buyout led by David Hayle in 2007, a shareholder restructuring in 2009, and the acquisition of Grayton Engineering in 2010.
Advisors to the transaction included Gateley, BTG McInnes, Shoosmiths and SSD.