Significant return on investment for Lloyds' private equity division
12 April 2012 11:33
LDC, the in-house private equity division of Lloyds Banking Group, has sold its stake in Cranswick Pet Products to Westland Horticulture for a total of £18m.
The deal represents a significant return for LDC, which acquired a 75% stake in Cranswick through a £17m management buy-out (MBO) in 2009.
Cranswick, which offers everything from bird feed to tropical fish, has increased sales by more than 10% in the three years since the MBO. The company achieved profits of £5m in 2011 – a year-on-year increase of over 35%.
LDC is confident that Westland is the perfect strategic fit for CPP. Director John Garner said:
“Our investment in CPP saw us back a first rate management team of a market leading business which has shown strong resilience throughout a sustained period of recession, and has ultimately generated a good return for LDC.
“The Westland Horticulture represents an excellent outcome for CPP and provides the business with a great platform from which to build further upon their existing growth strategy. We wish Derek and his team all the best for the future.”