LDC backs £42m Eley MBO

The sale came about due to IMI looking to divest its non-core assets. The buyout comprises IMI divisions Eley, Eley Americas and Accles & Shelvoke, which together form Eley Group under the new ownership structure.

The deal marks LDC's 13th new investment of the year.

Debt
A debt package for the deal was provided by HSBC.

Company
Founded in 1828 and headquartered in Sutton Coldfield, Eley is a manufacturer of .22 long rifle ammunition for target shooting.

Eley's sister company, Accles & Shelvoke, was founded in 1913 and is a manufacturer of humane slaughter equipment and cattle stunning equipment such as captive bolt stunners.

The three divisions – Eley, Eley Americas and Accles & Shelvoke – generated £15m in revenues last year, as well as an operating profit of £4.4m. Eley Group is forecast to make £17m in revenues with EBITDA reaching £6.1m in 2014. The company employs 122 staff.

People
Andrew Lane is the managing director of Eley. LDC's Birmingham team worked on the deal, led by Andy Lyndon alongside investment directors Chris Handy, Matt Newbold and Ben Snow. Handy and Newbold have joined Eley's board of directors.

Advisers
Equity – Wragge Lawrence Graham & Co (Legal).
Vendor – PwC (Corporate finance).

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