LDC, the Midlands leading private equity provider has today announced that it has completed a significant investment into Wolverhampton-based Angel Springs ("the Company"), the largest independent water cooler service provider in the UK. 

The Company is one of only two national operators that provide both bottled water coolers and mains fed coolers to supply chilled drinking water.

LDC's investment will help to support the management team's buy and build strategy, targeting complimentary businesses to increase market penetration and expand the existing customer base in what is a highly fragmented market.

Established in 2003 following the acquisition of three water cooler businesses led by existing Chief Executive John Dundon, Angel Springs has since doubled in size following a mix of strategic acquisitions, organic growth and geographic expansion. The business has considerably strengthened its position in the marketplace through innovation, the development of new products and services, as well as offering superior customer service.

The company supplies and services more than 45,000 bottled water coolers and mains-fed water coolers, to approximately 24,000 customers across the UK; and has a diverse customer base largely comprised of SMEs, together with a number of multi-site blue chip organisations, including the BBC, Staples, DHL and Xerox.

Angel Springs employs more than 180 staff and operates from a UK wide network of depots strategically located in Wolverhampton, Halifax, Gloucester, Tring and Glasgow, ensuring national coverage across the country. Most recently, the company has opened additional depots in Kent and Dorset, to service growing customer bases in the South East and on the South Coast. Angel Springs also manages its own infrastructure including a distribution fleet of 60 trucks.

The deal was led by Investment Director Andy Lyndon, together with Alistair Pendleton. Martin Draper, LDC Midlands Managing Director and Andy Lyndon will join the board as Non-Executive Directors with immediate effect.

John Dundon, Chief Executive of Angel Springs said: 

"LDC's investment reflects the confidence we both have in our future potential.

"Looking forward, we anticipate that LDC's support will allow us to further strengthen our market leading position, invest for future growth both organically and through acquisitions, as well as continuing the provision of high quality service for all our customers, existing and new."

Martin Draper, Managing Director LDC Midlands said:

"This deal represents the fifth transaction completed by LDC's Midlands' team in 2011 and confirms our long term commitment to supporting regionally based mid-market businesses with ambitious growth plans. 

"The transaction demonstrates the strength of the Midlands-based advisory and funding community, who have successfully delivered a great result within a tight timescale."

Andy Lyndon, Investment Director LDC added:

"In Angel Springs, we are partnering with a high-quality management team and a market-leading business which has a strong platform from which to generate further growth. 

"The company provides a premium service to its SME and blue chip customer base, and is supported by a well invested infrastructure. Going forward, we will work closely with the team to identify acquisition opportunities to accelerate growth and lead consolidation of the market."

The transaction was completed with support from a number of Midlands-based advisers including Browne Jacobson who acted as legal adviser to LDC and Gateley who acted as legal adviser to Angel Spring's management team. PwC provided financial due diligence and debt funding came from Royal Bank of Scotland.

The Angel Springs transaction follows on from the successful completion of the secondary MBO of Original Additions by the LDC Midland's team earlier this week; and is the ninth new investment completed by LDC nationally this year.