The mid-market private equity arm of Lloyds Banking Group has backed the management buy-out of Benson, one of the UK’s largest makers of printed folding carton and sleeve packaging.
LDC’s investment in the Leicestershire-based company marks the second transaction completed by the firm’s Midlands’ team this month through its £200m manufacturing and specialist engineering platform.
Established in the 1920’s, Benson is the UK market leader in the supply of printed folding carton board packaging to the food retail sector. In the healthcare market, the group manufactures cartons, patient information leaflets and labels for pharmaceutical customers in the UK and Europe.
The company has grown considerably in recent years following a mix of strategic acquisitions, organic growth and substantial investment into all of its manufacturing facilities. It employs more than 900 staff and operates through manufacturing sites in Newcastle, Gateshead and Crewe.
Andy Grove, an investment director at LDC, said, “In Benson Group, we are partnering with a high-quality management team and a market-leading business which has a strong platform from which to generate further growth. Going forward, we will work closely with the business to identify acquisition opportunities in order to help accelerate growth.
“This deal represents the eighth transaction completed by LDC’s Midlands’ team in 2011 and confirms our long term commitment to supporting regionally based mid-market businesses with ambitious growth plans,” he added.
Lloyds Bank Corporate Markets’ Acquisition Finance team and HSBC Leveraged Finance Midlands team jointly provided a package of senior debt and revolving credit facilities to support the transaction.
American Golf has a portfolio of 88 stores across the UK and Northern Ireland and an online presence. Last year, the retailer increased total sales by 20 per cent to £86.6m, driven by the acceleration of its store roll-out and refit programme and strong growth in its internet business, LDC said in a statement released today.
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