LDC sells Mini-Cam to Halma for £85m

Kenny Wastell
01 November 2017

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LDC has sold its stake in British pipeline inspection systems producer Mini-Cam to trade buyer Halma after a two-year holding period, in a deal valuing the business at ТЃ85m.

A spokesperson for LDC told unquote" the sale generated a 3.3x return for LDC, equivalent to an IRR of 70%.

Since the GP's initial investment, Mini-Cam has expanded internationally, increasing its footprint from one site to three and opening a research and development facility in Austria. It has also started selling its products into the US, Australian and Scandinavian markets. International sales account for 42% of revenues, compared with 31% in 2015.

According to a statement, the company's headcount increased from 37 to around 50 during the holding period.

The transaction is the eighth exit for LDC since the start of June. Most recently, the GP sold its stake in safety equipment manufacturer Kee Safety to Investcorp, in a deal giving the company an enterprise value of £280m.

Previous funding
LDC acquired a substantial minority position in Mini-Cam in a management buyout in July 2015. The deal was made via the GP's Manchester office.

Company
Founded in 1992 and headquartered in Warrington, Mini-Cam is a designer and manufacturer of CCTV pipeline inspection systems, mainly used in the clean water and wastewater utilities market. Its clients also include public authorities and companies in the oil and gas, petrochemical, nuclear, security, construction and engineering sectors.

People
LDC – Chris Wright (investment director); Jonathan Bell (head of north west).
Mini-Cam – Nigel Wilson (managing director).

Advisers
Vendor – Clearwater International, David Weavers (corporate finance); DWF, Frank Shephard (legal).