LDC, the mid-market private equity arm of LloydsTSB, has invested 17 million (€19 million) in the MBO of Cranswick Pet & Aquatics from listed food producer Cranswick.
With a 250 million commitment to invest nationally this year, the deal forms part of LDC’s investment strategy, having already placed over 49 million of funding in two previous transactions so far this year.
Cranswick consists of two trading divisions: Cranswick Pet Products, a UK manufacturer and distributor of wild bird food products and accessories; and the Tropical Marine Centre, a UK supplier of tropical marine fish and associated aquatic accessories and fish food.
The MBO team is led by the chief executive of Cranswick, Derek Black, together with Paul West, the managing director of Tropical Marine Centre.
The deal will provide the capital required to help support the continuing growth of both Cranswick Pet Products and Tropical Marine Centre through new products, new channels to market and developing the export market further, LDC said in a statement.
“Essentially, we are backing a first-rate management team who have built a market leading business, which we believe is not only resilient to the challenging economy but is also well placed for future growth,” says John Garner, investment director and head of LDC East Midlands.
Last month, LDC and Advent Venture Partners, a UK venture capital firm, completed a 72 million merger of their respective portfolio companies Pro-Bel and Snell & Wilcox. Both companies provided technology solutions to the broadcasting industry.
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