Private equity provider LDC has invested £25 million in infrastructure solutions business Aspin Group, the parties have announced.
Aspin designs and constructs piled foundations for the rail sector; primarily used for supporting overhead line equipment (OLE) and signalling structures. The company was founded in 2000 and has its headquarters in Hemel Hempstead.
The business currently employs 200 staff and has operations across the UK – including sites in Mansfield, Derby, Hemel Hempstead, Preston, Glasgow and Somerset.
The latest injection of cash will be put towards continuing the company’s tradition of innovation and fast growth. As part of the deal former Network Rail board member Keith Ludeman will join Aspin as a non-executive director.
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Aspin has grown significantly in recent years, with current annual revenue approaching £35million. Growth has come on the back of continuing strong investment in the UK rail sector, as well as expansion of Aspin’s range of products and services and the end markets it serves, which include waterways, highways and power distribution.
Aspin’s customer base comprises many of the UK’s leading names in rail, construction and related industries such as Network Rail, Carillion, Skanska and Balfour Beatty.
Co-founder Barry McMahon said LDC’s investment “demonstrates their belief in our business model and provides us with a strong platform to maximise our growth ambitions”.
“The rail industry continues to face considerable change and this presents us with a number of exciting growth opportunities,” he said. “Going forward, we intend to increase the pace of organic growth and build further upon our existing network of operations and services, whilst also actively pursuing viable acquisition opportunities as part of an ongoing ‘buy and build’ strategy.”
The deal was transacted by LDC’s Nottingham team, led by investment director John Green, with support from Andy Grove. They will both join the board with immediate effect.
Green said LDC was attracted to the deal as Aspin has a “highly experienced management team that has led the business through multiple phases of organic and acquisitive growth over recent years”.
“There are record levels of investment being made in rail electrification over the coming years, and Aspin is well placed to further accelerate its growth and expansion plans,” he continued. “Our support will provide the team with additional financial and strategic firepower to fully capitalise on this.”
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