LDC invests £11.5m in Sala International

Viktor Lundvall
17 January 2011

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LDC has acquired a majority stake in Sala International following an £11.5m investment in the UK document archiving and records storage business.

The buy-in management buyout sees Tomas Gronager joining the company as new CEO. LDC is said to have actively looked for investment opportunities in the sector.

LDC was attracted to the deal because Sala provides a strong platform and a scalable business model. With the support of LDC, Sala is aiming to grow organically and through acquisitions.

Debt
The Acquisition Finance division of Lloyds Bank Corporate Markets provided a £7.3m debt package to support the transaction.

KEY FACTS

Sala International

DEAL TYPE – Buyout
VALUE – n/d (<£50m)
LOCATION – Shoeburyness
SECTOR – Business Support Services
FOUNDED – 1994

Company
Sala was established in 1994 and provides document archiving and records storage services for a wide range of sectors including financial services, public sector, healthcare support services and retail. The company operates from Shoeburyness, Essex, and recently opened a facility close to Leeds.

People
Yann Souillard worked on the deal for LDC.

Advisers
Equity - CMS Cameron McKenna (Legal); Green Park Partners (Corporate finance); BDO (Financial due diligence); CIL (Commercial due diligence).