LDC INVESTS TO SUPPORT GROWTH OF PJD GROUP
L-R Matthew Norrington of LDC, David Hayle of PJD, John Garner newly appointed PJD Director |
LDC,
the Midlands leading private equity provider has today announced that it has
invested into Castle Donnington based PJD Group (“PJD” or “the Company”), one
of the UK’s leading independent mechanical engineering specialists.
The
transaction represents LDC’s first deal completion using capital from its
recently launched £200 million manufacturing and specialist engineering
commitment - an initiative focused on supporting businesses with specialist
manufacturing capabilities across a range of niche sectors including power
generation, aerospace, defence and oil and gas.
The
deal further underpins LDC’s commitment to provide growth capital funding to
support locally-based, high-growth businesses operating within the UK mid-market.
Equally PJD is also well suited to benefit from LDC’s active support for a buy
and build approach, a strategy that will underpin PJD’s future direction.
First established in 1984,
PJD provides a wide range of repair, maintenance, manufacturing, upgrade and installation
services across the power, environmental and industrial markets and employs
over 250 full time staff.
The
company is focused on three key areas - PJD
Power, which provides services to the coal, gas and nuclear power and plants sectors;
PJD Environmental, which provides services to the emerging renewable energy
industry and biomass generation; and Grayton Engineering, which operates within
the cement, chemical, refineries and steel industries.
LDC
is backing PJD’s existing management team, which is led by Chief Executive
David Hayle. PJD’s founder Peter Douglas will remain on the board as a
Non-Executive Director.
The
deal was led by LDC Director John Garner and Investment Director Matthew
Norrington. John Garner will join
the board with immediate effect.
Commenting
on the investment, John Garner, LDC Director said:
“In
PJD, we are backing a market leading business which is well placed within each
of its key sectors to deliver strong organic and acquisitive growth.
“LDC is fully committed to supporting the
growth and expansion of our portfolio companies and by working closely
alongside PJD’s highly experienced management team we intend to target
strategic acquisitions to help accelerate the company’s growth prospects in
existing and new market sectors.”
David
Hayle, Chief Executive of PJD added:
“The
replacement energy market is worth £110 billion over the next 10 years, so it
was important for us to find the right strategic investment partner in LDC. We look
forward to the financial and strategic support that that their investment will
bring to our business.
“This
transaction will help to underpin our overall growth and development strategy
as we actively seek to acquire businesses that will complement and enhance our
existing service proposition.”
Martin
Draper, LDC’s UK New Business Managing Director said:
“This
deal is the first to be completed with funding from LDC’s £200million
investment commitment to manufacturing and specialist engineering businesses,
and is an early indication of our initiative to partner with high quality
management teams of mid-market companies to help support their growth and
expansion in this important industry sector.”
HSBC
Corporate and Structured Banking (Stuart Grantham and Stephen Stout) continued
to provide debt funding to PJD following their funding support for the original
Management Buyout led by David Hayle in 2007, and the acquisition of Grayton
Engineering in 2010.
Advisors
to the transaction included Gateley (Austin Moore and Mark Rutherford), BTG
McInnes (Dave Irwin), Shoosmiths (Shaun McCabe) and SSD (Jonathan Jones).