LDC generates 2.6x multiple on Waterfall exit to Elior

The transaction resulted in an IRR of 81% for the GP, following just a 19-month holding period. Waterfall's existing management team will retain a stake in the business as part of the deal.

Under LDC's tenure, the company has focused on improving its margins and has increased its headcount from 3,000 to around 3,500, according to the GP.

The exit marks the third trade sale by LDC's north-west team in 12 months, following the divestments of Synexus to PPD and Bifold to Rotork, which generated 2.3x and 2.4x returns respectively. Last month the office also oversaw the sale of New World Trading Company to Graphite Capital, generating a 6.1x return.

Previous funding
YFM originally backed the £4.3m buyout of Waterfall (then trading as Cater Plus Services) from a private vendor in 2007. Other investors taking part in the transaction included Calculus Capital and the Kaye Enterprises, a family trust.

In December 2014, LDC acquired the business via a £20m secondary buyout, with HSBC providing a £10m senior debt and revolving credit facility to support the deal.

Company
Founded in 1991 and headquartered in Warrington, Waterfall is a contract catering business operating under two brands. Caterplus targets residential and care homes as well as welfare charities and shelters. Taylor Shaw, meanwhile, focuses on the education sector with contracts for colleges and state primary and secondary schools.

The group generates a turnover of £70m, up from £50m at the time of LDC's investment.

People
LDC – Richard Ibbett (investment director).
Waterfall – Jim Lovett (CEO).

Advisers
Vendor – Deloitte (corporate finance); DWF (legal); DSW (financial due diligence).

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• Exits
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