FRP Corporate Finance advises mid-market private equity investor LDC
We’re pleased to have supported LDC, the UK’s leading mid-market private equity firm, on its significant investment in water and environmental sustainability specialist Stonbury.
UK-based Stonbury works with water companies and environment agencies across the UK to deliver innovative, low-carbon solutions to maintain, repair and refurbish their critical assets, from drinking water provision to wastewater treatment, helping to protect supplies and mitigate the impacts of climate change.
The business employs around 300 people across 11 locations in the UK. It recorded revenues of £44.7 million in the year to June 2022.
LDC will now work in partnership with the existing management team, led by CEO Trevor Hoyle, as it expands its range of water, wastewater and nature-based, low-carbon environmental services, through organic growth and acquisition. This includes plans to further extend into clean energy solutions.
LDC was advised by our FRP Corporate Finance team in Cambridge, led by Corporate Finance Partner Dan Bowtell and Debt Advisory Partner Tom Cox. FRP Corporate Finance provided buyside advice and debt advisory services to LDC, sourcing a competitive debt package for the deal. The team also helped with valuation, market mapping for acquisitions, detailed financial modelling and analysis relating to the investment.
Dan Bowtell, Partner at FRP Corporate Finance, said: “Stonbury has an emphasis on delivering the innovative, low carbon and reliable solutions that the utilities sector needs right now.
“It’s a fantastic example of a company that’s addressing some of society’s biggest challenges, helping to build a better future for us all. These kinds of dynamic businesses are meeting the sustainability challenge head on, and will continue to attract the backing of investors in 2023.”
Tom Cox, Debt Advisory Partner at FRP Corporate Finance, said: “Appetite to fund the transaction was strong, demonstrating the desire of both banks and funds to support ambitious businesses with strong propositions and solid ESG credentials. We were delighted to advise LDC and management on a flexible financing package that will allow them to deliver on their growth plan.”
Stonbury’s recent projects include restoring rivers to boost biodiversity and creating artificial wetlands to support natural flood management.
Trevor Hoyle, CEO of Stonbury, said: “Sustainability sits at the heart of the challenge water companies and environmental organisations are facing. Creating a more resilient and efficient water network and a healthier, safer environment will be vital to reduce the impact of significant weather events. Stonbury is well-equipped to support our clients with low-carbon and nature-based solutions.”
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These kinds of dynamic businesses are meeting the sustainability challenge head on, and will continue to attract the backing of investors in 2023.Dan Bowtell Corporate Finance