LDC backs bolt-on for Microlease

The transaction was funded through cash reserves from Microlease, a capital injection from LDC and debt facilities from US-based Comercia Bank.

Microlease expects to boost its revenues to $90m next year and strengthen its position in the test equipment rental business market in America.

The investor is convinced that Microlease's position in the market will boost the development of strategic partnerships with suppliers and customers worldwide.

In 2006, LDC backed the MBO of Microlease for £30m and invested an additional £8.3m in 2009. In the same year, Microlease acquired Telogy International and in 2011 it took over Hamilton Hall Consultants in order to expand its asset management services.

Company
Harrow-based Microlease offers a range of services to the test and measurement market, including rental, leasing and sale of test equipment, as well as calibration and asset management services. It provides a wide range of general purpose test equipment such as oscilloscopes and data acquisition products, as well as specialist equipment for the telecoms and aerospace markets. It supplies rental, contract hire, direct purchase, calibration and repair services to companies such as Alcatel and Ericsson, and enjoys strategic relationships with other telecoms network equipment manufacturers.

The company operates across Europe, Africa, the Middle East and the Americas. It was founded in 1979 and employs more than 100 people.

Between 2006 and 2011, Microlease's revenues increased from £17m to £75m, while EBITDA has improved from £5m to £20m. Additionally, the company has expanded its team from 86 to 223 in the last five years.

People
LDC's managing director Yann Souillard worked on the deal for LDC.

Advisers
Equity – Stephens & Bolton (Legal).

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