LDC in £42m shooting deal

The firm has bought the ammunition manufacturer using its £500m ‘manufacturing and specialist engineering commitment’

LDC, the buyout arm from UK-based Lloyds Bank, has invested £42 million (€53 million, $67 million) in the Eley Group, an ammunition manufacturer, from IMI, a Birmingham-based engineering business.

Eley’s products are used in target shooting by Olympic standard athletes at all major global tournaments. A significant majority of medals secured at major shooting events, such as the London 2012 Olympic Games, were won by shooters using Eley Tenex. The Eley Group currently employs more than 120 people, and in 2014 is forecast to generate turnover of £17 million and EBITDA of £6.1 million.

The Eley Group has delivered “significant growth in recent years, as a result of on-going product development, alongside increasing demand from a growing global customer base, particularly in the UK and USA”, LDC said in a statement.

LDC’s investment will help to accelerate the continuing growth of Eley Group, “primarily through new product ranges and further penetration of the global marketplace”, LDC said.

For LDC, this is its 13th deal this year, having invested more than £200 million, together with a further £15 million of capital for add-on acquisitions.

LDC made the transaction using capital from LDC’s £500 million manufacturing and specialist engineering commitment that was launched in 2011. The initiative focuses on supporting businesses with specialist manufacturing capabilities across a range of niche sectors including power generation, aerospace, defence and oil and gas.

LDC, which invests from its balance sheet, invests in mid-market businesses in the UK. In June, it sold its stake in Metronet, a Manchester-based provider of wired and wireless internet connectivity, netting LDC a 4x return.