LDC invests £11m for minority stake in Lucid

Kenny Wastell
12 June 2017

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LDC has invested ТЃ11m in Lucid Group Communications, a medical communications and consultancy business, in exchange for a minority stake.

Following the deal, the company will invest in its digital infrastructure and look to expand its presence in the US, having entered the American market in 2016. Its founders, Jan Steele and Dennis O'Brien, will continue to lead Lucid under its new ownership structure.

LDC investment directors Christian Bruning and Rob Apollo will take a seat on the company's board as part of the deal. Tim Trotter, a PEI Media chairperson and former Ludgate Group CEO and chair, will take on the role of non-executive chairperson.

The transaction is the fifth investment made by LDC's London team over the course of the last 12 months. Most notably, the London-based team invested £10m in existing portfolio company Icon Polymer Group (which has since been rebranded as Applied Composites) in July 2016 and acquired a minority stake in Blue Bay Travel for £6.5m in February 2017.

HSBC provided banking facilities to support the transaction, according to a statement issued by LDC.

Company
Founded in 2007 and headquartered in Loudwater, Buckinghamshire, Lucid provides communications, research and consultancy services to pharmaceutical companies. It has offices in London, Beaconsfield and New York, with a total headcount of around 100.

According to publicly available documents, Lucid generated a turnover of £13.4m in 2016, with an operating profit of £3.4m.

People
LDC – Christian Bruning, Rob Apollo (investment directors).
Lucid Group Communications – Jan Steele (president); Dennis O'Brien (CEO).

Advisers
Equity - Shoosmiths (legal); RSM (corporate finance); BDO (financial due diligence); Candesic (commercial due diligence); Matrix (corporate finance).
Company - Results Healthcare (M&A); Osborne Clarke (legal).