Private equity provider LDC has completed the management buy-out of Leicestershire-based manufacturer Benson Group.
Benson is one of the UK’s largest manufacturers of printed folding carton and sleeve packaging and the investment is the second transaction completed by LDC Midlands’ team this month using capital from its £200 million manufacturing and specialist engineering commitment.
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 considerably in recent years following a mix of strategic acquisitions, organic growth and substantial investment into all of its manufacturing facilities.
LDC’s investment facilitates the exit of the two principal Benson family shareholders from the business and will help to support the management team’s growth strategy.
Benson Group employs more than 900 staff and operates from its head office in Bardon in Leicestershire, as well as strategically located manufacturing sites in Newcastle, Gateshead and Crewe.
The deal was led by investment director Andy Grove, together with Matthew Norrington. Andy Grove and Martin Draper, LDC’s UK new business managing director, will both join the board with immediate effect.
Mr Kerridge 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.”
Mr 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.
“This deal represents the eigth transaction completed by LDC’s Midlands’ team in 2011 and confirms our long term commitment to supporting regionally based mid-market businesses with ambitious growth plans.”
Stephen Kitts at Eversheds acted as legal adviser to LDC. Benson Group shareholders and management team were advised by Mustafa Abdulhusein of Grant Thornton, with legal advice provided by Chris Garnett and Sanjeev Sharma of Shoosmiths.