LDC completes MBO of Benson Group

Amy King
06 January 2012

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LDC has backed the management buy-out of printing and packaging business, Benson Group, facilitating the exit of the two principal family shareholders. Financial details of the transaction remain undisclosed.

The investment marks LDC's second transaction in a month using capital from its £200m allocation to manufacturing and specialist engineering.

Investment will support the management team's growth strategy, which involves acquisition opportunities.

Debt
A joint package of senior debt and revolving credit was provided by Lloyds Bank and HSBC.

Company
Founded in the 1920s by the Benson family, Benson Group supplies printed folding carton board packaging to food retailers. The company also manufactures cartons, patient information leaflets and labels for pharmaceutical companies in the UK and Europe.

Since 2002 the firm has grown organically and through acquisitions, as well as via investment in all its manufacturing facilities. Benson Group currently employs around 900 members of staff working from its head office in Bardon and its manufacturing sites in Newcastle, Gateshead and Crewe.

People
The transaction was led by LDC investment directors Matthew Norrington and Andy Grove. The latter has been appointed to the Benson board alongside LDC's UK new business managing director Martin Draper. Paul Whitehouse, Andy Taylor and Martin Cordey from Lloyds Bank and Stuart Grantham and Andy Payne from HSBC drew up the debt package. Mark Kerridge is managing director of Benson Group.

Advisers
Equity - Eversheds, Stephen Kitts (Legal).
Company - Grant Thornton, Mustafa Abdulhusein (Corporate finance), Shoosmiths, Chris Garnett and Sanjeev Sharma (Legal).