Private equity firm LDC has enjoyed a healthy return after a firm it invested in three years ago was sold for £64 million.
FTSE 100-listed Compass Group has acquired security firm Vision Security Group which includes buying out the minority stake held by LDC since 2007.
Northampton-based VSG, which offers guarding, electronic security systems, remote monitoring, training and background screening services, has seen its turnover rise by more than half to £140 million over the last three years.
Its employee numbers have also risen considerably from less than 4,000 to nearly 6,000.
LDC Midlands managing director Martin Draper said LDC had supported the management team in both their organic and acquisitive growth including taking over two electronic security providers and opening additional branches.
He said: “We have enjoyed working closely with VSG’s management team over the last three years, during which time we have enhanced performance and successfully generated scale in the business. Growth has been achieved both organically and through acquisition, which we consider to be fundamental in our continued support of the businesses we invest in.
“The sale to Compass Group represents an excellent outcome both for VSG’s employees and customers and we wish them all continued success in the future”.
VSG was established in March 2000 by the current senior management team, Bill Muskin and the existing senior management team. Going forward, VSG will be a discrete identity within Compass Group’s facilities management offering.
Managing director Keith Francis said: “We have enjoyed good working relationships with the LDC team over the last three years. Their support has been excellent and the input that they have had into the business has undoubtedly ensured that VSG is now well positioned to progress further to the next level of development.
“The deal with Compass Group is the right move for VSG and going forward, their partnership will allow us to further our growth strategy and take the business into a new dimension.”
The transaction was supported by a strong team of local advisers, including Andy Currie and Justin Crowther at Catalyst Corporate Finance who acted as lead advisers, while Stephen Kitts of Eversheds in Nottingham provided legal advice to the shareholders.