LDC acquires ELE from Albion and Maven

Katharine Hidalgo
03 October 2019

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LDC has acquired aerospace parts manufacturer ELE Advanced Technologies from Albion Capital and Maven Capital Partners.

The current management team will stay on with the company and LDC investment director Chris Handy and director Rob Schofield will join the company's board.

In February 2018, Maven reported its Maven VCT 1 stake in the company as being worth £993,000, more than 5x the original cost of £192,000.

Albion's Crown Place VCT's December 2018 report valued its stake in the company at £4.5m, 4.3x the cost of the investment at £1.05m. Albion owned 41.9% of voting rights in the company and 74.3% of class B ordinary shares.

Following the transaction, the company will focus on organic growth and invest in its manufacturing infrastructure to increase capacity.

The company generated revenue of £14m in its latest financial year.

Debt facilities for this transaction were supplied by Lloyds Bank.

Previous funding
Previously part of TransTec, the company's management team joined forces with Maven in 2000, investing £7m to buy the subsidiary when ELE's parent went into receivership. The funding package was provided by Murray Johnstone's four VCTs, which together invested £2.5m in the transaction. Debt was provided by Euro Sales Finance and RoyScot Trust. Maven's Murray Johnstone VCTs acquired a majority holding, while the management team acquired the remainder.

Company
Headquartered in Colne, ELE is a manufacturer of aerospace components, industrial gas turbine parts and components for the commercial diesel sector. Clients include Rolls-Royce, Siemens and GE Power. The company also has a manufacturing plant in Slovakia and employs more than 180 people across its two locations. ELE was founded in 1995.

People
LDC - Chris Handy (investment director); Rob Schofield (director).
ELE Advanced Technologies - Manesh Pandya (CEO).

Advisers
Equity – Springboard (corporate finance).
Vendor – Livingstone Partners (corporate finance).