LDC exits Direct Group in trade sale

This is the sixth exit for LDC this year. The GP notably divested Eveden Group in a £148m trade sale and sold Cranswick Pet Products to Westland Horticulture for £18m.

Clearwater Corporate finance advised LDC on the sale of Direct Group.

Previous funding
LDC bought Direct Group in an MBO from Barclays Private Equity (now Equistone Partners) for £40m in 2007. LDC invested £21m of equity in the deal.

The company has since then made four bolt-on acquisitions, most recently buying Simple Insurance from UK General. This deal was funded by Lloyds Bank's Wholesale Banking & Markets Acquisition Finance as part of a £15m refinancing facility.

Direct Group's sales have doubled since the 2007 MBO. Headcount also increased sharply from 70 to 450 staff.

Company
Doncaster-based Direct Group offers a range of MGA and TPA services across the insurance industry. It also provides solutions including underwriting, proposition delivery, policy administration and premium collection services to financial institutions, corporates and affinities. The company generates a £20m turnover.

People
Carl Wormald and Jon Pickering led the deal for LDC – they will step down from the company's board upon completion of the transaction.

Advisers
Vendors – Clearwater Corporate Finance, Paul Jones (Corporate finance); DLA Piper, Nick Roome (Legal).

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• Topics
• Exits
• UK / Ireland
• Support services
• United Kingdom
• LDC
• Trade sale