LDC in £50m MBO of Clifford Thames

Amy King
21 August 2014

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LDC has backed the ТЃ50m management buyout of Clifford Thames, a UK-based automotive data firm.

The company's previous backer, Octopus Investments, has reinvested in the business as part of the deal.

LDC plans to roll out the company's software platform into new global markets and identify new acquisitive opportunities.

Previous funding
The company has a history of private equity involvement, dating back to 1993 when 3i committed £1m, according to unquote" data. In January 2002, the GP made a £350,000 capital commitment to the firm, followed by a £400,000 injection in 2003 to boost the firm's working capital base.

February 2010 saw Octopus Investments commit £6.25m to the business in a mezzanine deal that enabled the management to buy back its stake from 3i and boost product development.

Company
Headquartered in Chelmsford, Clifford Thames provides outsourced services to the automotive parts, servicing and repairs industry. The firm provides data and operational advisory services to its customer base, which includes vehicle manufacturers, sales companies, franchised dealer networks, bodyshops and leasing companies.

The firm was originally founded in 1948 and has 450 employees at its offices in 10 countries. Clifford Thames has outsource centres in Krawkow and Chennai.

People
LDC's Reading team worked on the deal led by managing director Yann Souillard. Investment executives Christian Bruning, Jonathan Caswell and Matt Kenny also worked on the deal. Bruning joins the company's board as non-executive director. Calvin Barnett is chief executive at Clifford Thames.

Advisers
Vendors – KPMG (Corporate finance); Olswang (Legal).
Equity – Osborne Clarke (Legal); Baker Tilly (Financial due diligence); Roland Berger (Commercial due diligence).