LDC backs MBO of manufacturer Eley Group

A £42 million buy-out has been led by the management team of Eley Group ahead of new product range development and global growth.

Private equity firm LDC has supported Eley Group through a management buy-out, its 13th new investment of 2014 and made from the backer’s 2011 £500 million manufacturing and specialist engineering fund.

Andrew Lane, managing director at Eley Group, is leading the deal alongside other members of the senior management team.

Established in 1828, Eley manufactures .22LR rounds for the target shooting market. Its products are used by Olympic athletes, with London 2012 medal winners utilising the Eley Tenex range.

The Birmingham-based company has two trading subsidiaries and now plans to grow through new product ranges and ‘further penetration of the global marketplace’.

Lane says, ‘Looking forward, LDC’s support will allow us to strengthen our market-leading position, invest for future growth and accelerate expansion into new geographic territories.

‘We will also continue to maintain a firm focus on the manufacture and supply of quality products for growing our customer base, both here in the UK and overseas.’

More on recent LDC deals:

Eley says that turnover for 2014 is expected to be £17 million, generating an EBITDA of £6.1 million. Supporting this planned growth will be Chris Handy and Matt Newbold, both of whom will join the board as non-executive directors.

LDC CEO Martin Draper believes that Eley is a ‘well-established market-leading business’ with strong reputations in distinct sectors.

‘Growth is being driven by consistent demand for high-quality target shooting rounds on a global scale, with the Eley product range firmly established as the number one choice in the international competitive shooting space,’ Draper adds.

‘We are partnering with a high-quality management team led by Andrew Lane, and will be working closely with them to accelerate the next phase of growth and expansion both here in the UK and internationally.’

LDC has now invested £200 million into new businesses during 2014, as well as a further £15 million into existing portfolio companies.

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for GrowthBusiness.co.uk from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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