LDC buys minority stake in Iglu

LDC is acquiring the stake in the online travel company from Growth Capital Partners

LDC, a London based mid-market firm, has acquired a minority stake in online travel agent Iglu from Growth Capital Partners, according to a statement from LDC.

The firm has invested around £60 million ($93 million; €81 million), an industry source said.

Iglu's existing management, including its founder Richard Downs, retains a majority stake in the business that specialises in skiing and cruise holidays. The company has doubled sales over the past three years from £87 million to £174 million, according to the statement. LDC plans to expand the company into new territories and product areas including tailor-made holidays, luxury cruises and long haul travel.

Lloyds Bank Commercial Banking and RBS provided debt funding for the deal, the statement said.

Advisers to LDC were Livingstone, Alvarez & Marsal and CMS Cameron McKenna. Growth Capital Partners and Iglu’s management was advised by Deloitte and Osborne Clarke.

LDC is a unit of Lloyds Banking Group and invests in companies seeking up to £100 million for management or institutional buy-outs or development capital. In 2014, it invested £250 million of equity across 16 companies, and an additional £28 million in acquisitions.

In April, the firm completed a £25 million investment into infrastructure company Aspin Group to boost its rail capabilities, as reported by Private Equity International.