LDC takes £25 million minority stake in Aspin Group

The transaction will help the firm expand its presence in the UK rail sector

Lloyds Development Capital has completed a £25 million (€34.97 million; $38 million) investment to support the future growth of infrastructure firm Aspin Group, according to a statement from the private equity provider.

The deal, led by LDC investment director John Green, aims to support Aspin’s founders Barry McMahon and Andy Hoffman in expanding Aspin’s presence in the UK rail sector, particularly with the investment by one of its clients, Network Rail, in rail electrification.

“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,” Green said in the statement. “Our support will provide the team with additional financial and strategic firepower to fully capitalise on this.”

This transaction brings former Network Rail board member Keith Luderman to the business as the non-executive chairman and is the latest of LDC’s investments that reached £1.6 billion in the past five years. It will support Aspin’s ongoing ‘buy and build’ strategy, according to McMahon.

Aspin, based in Hemel Hempstead, performed two acquisitions in the past two years, one with sheet-piling company McGrattan in 2013 followed by a 2014 transaction with Rogers Structural Investigations, an on-site infrastructure inspection and testing services provider.

It has a current annual revenue of about £3.5 million and a customer base comprising UK rail and construction companies such as Network Rail, Carillion, Skanska and Balfour Beatty.

This is the third Midlands-based transaction for LDC this year, following its acquisitions of the NEC Group and Away Resorts. The deal was supported by Midlands-based advisors such as Browne Jacobson, PwC, Smith Cooper, Geldards, Flint Bishop and Freeths.