LDC exits Leasedrive to HgCapital

As part of the transaction, LDC has reinvested in Leasedrive, retaining a minority stake in the Wokingham-based company, with HgCapital taking a controlling stake.

LDC bought the firm from Lyceum Capital for £80m in 2008. The GP supported the expansion of the firm's operations through organic and acquisitive growth, including the bolt-on of Masterlease UK in a deal supported by Investec in 2010.

Prior to the LDC buyout, in 2007 Lyceum merged Leasedrive with its existing portfolio company Velo, having bought the firm in 2003.

Over the last year, LDC invested around £350m in 19 new businesses and completed 12 divestments. LDC's latest exit prior to divesting Leasedrive was the sale of Mountain Warehouse in a management buy-back worth £85m. Its latest investment was the £22m capital injection into homeware and fashion retailer Joules in exchange for a minority stake.

Company
Founded in 1983, Leasedrive provides vehicle management services to clients, which include fleet management, contract hire plus short and mid-term vehicle rentals. Leasedrive's clients include PwC, Samsung and Capita, with Mercedes Benz Financial Services UK hiring Leasedrive for its new business unit Daimler Fleet Management.

Leasedrive reported a revenue of £116m and an operating profit of £14m in 2012.

People
Alex Snodgrass is LDC's investment executive. David Bird is the managing director of Leasedrive.

Advisers
Vendor – EY (Corporate finance); Osborne Clark (Legal).

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• Topics
• UK / Ireland
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• Buyouts
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• LDC
• HgCapital
• Secondary buyout