LDC, the Midlands leading private equity provider has today announced that it has completed the management buy-out of Leicestershire-based Benson Group, one of the UK's largest manufacturers of printed folding carton and sleeve packaging. 

The significant investment into Benson Group is the second transaction completed by LDC Midlands' team this month using capital from LDC's £200million manufacturing and specialist engineering commitment.

Benson Group is the UK market leader in the supply of printed folding carton board packaging to the food retail sector. In the healthcare market, Benson Group manufactures cartons, patient information leaflets and labels for pharmaceutical customers in the UK and Europe.

Originally established in the 1920s by the Benson family, Benson Group has been led by existing Managing Director Mark Kerridge since 2002 and has grown considerably in recent years following a mix of strategic acquisitions, organic growth and substantial investment into all of its manufacturing facilities.

LDC's investment facilitates the exit of the two principal Benson family shareholders from the business and will help to support the management team's growth strategy.

Benson Group employs more than 900 staff and operates from its head office in Bardon in Leicestershire, as well as strategically located manufacturing sites in Newcastle, Gateshead and Crewe.

The deal was led by Investment Director Andy Grove, together with Matthew Norrington. Andy Grove and Martin Draper, LDC's UK New Business Managing Director, will both join the board with immediate effect.

Commenting on LDC's investment, Mark Kerridge Managing Director of Benson Group said: 

"LDC's investment and support for Benson Group will help the company realise our growth ambitions. It will further strengthen our market leading position, provide a foundation for future growth, and ensure that we maintain a high quality service for our customers."

Andy Grove, Investment Director LDC said:

"In Benson Group, 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. Going forward, we will work closely with the business to identify acquisition opportunities in order to help accelerate growth.

"This deal represents the 8th 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."

Reflecting on another successful new investment completed by LDC in recent weeks, Martin Draper, LDC's UK New Business Managing Director added:

"This investment, our second from the £200million specialist engineering & manufacturing initiative, epitomises the LDC philosophy. The Benson Group is a growing business in a sector that we understand well, with a first class and ambitious management team, and the transaction has been completed by the Midlands team of LDC's regional network. It is the 15th investment of 2011 for LDC and once again demonstrates our commitment to UK SMEs."

Lloyds Bank Corporate Markets' Acquisition Finance team (Paul Whitehouse, Andy Taylor and Martin Cordey) and HSBC Leveraged Finance Midlands team (Stuart Grantham and Andy Payne) jointly provided a package of senior debt and revolving credit facilities to support the transaction.

Paul Whitehouse said: 

"Benson Group has a highly experienced management team, strong growth track record and best-in-class manufacturing facilities, which position the business to continue its expansion with the backing of LDC."

Stuart Grantham commented: 

"The company represents an attractive funding proposition and we are delighted to support it through the next stage of its strategic development."

Stephen Kitts at Eversheds acted as legal adviser to LDC. Benson Group shareholders and management team were advised by Mustafa Abdulhusein of Grant Thornton, with legal advice provided by Chris Garnett (shareholders) and Sanjeev Sharma (management) of Shoosmiths.