Lloyds TSB Development Capital (LDC), a subsidiary of Lloyds TSB Bank plc, has completed a multi-million pound investment in Omega Red Group, the UK specialist in earthing and lightning protection.
The Nottingham-based company completed the sale of a minority stake to LDC on 28 February following interest from a number of bidders. Omega plans to use the money raised to help achieve its future growth plans.
Colin McElhone, will take up the reins as managing director with immediate effect, having previously been acting as divisional manager. "It will be business as usual in the short-term but we see a lot more potential in this business. It's good news for the staff and for the company as it will give us access to the kind of expertise and investment capital that will enable us to make the most of our market leading position."
"Our industry faces its biggest change in decades with the introduction of a new British Standard for protection against lightning later this year but it means that the significant investment we have made in infrastructure, retraining and best practice has left us well placed for continued strong growth."
In October 2007 the company announced a record half-year turnover of £6.1m, up 20% on the same period last year with strong orders for future work the company is forecasting its best ever year. The announcement followed record profits of over £1.6m achieved on the back of a record turnover of almost £12m for the year to 31 March 2007, a rise of 18.6% on the previous year
Since Omega was set up in 1988 growth has been both organic and through acquisition. The company acquired its largest competitor, Furse Specialist Contracting, in 1995 to become UK market leader, more than 3-times the size of its nearest rival. The company now employs approximately 250 people across the UK at its branches in Edinburgh, Manchester, Bristol, London and including its Nottingham head office in Bulwell.
John Garner and Andy Lyndon, investment directors at LDC led the transaction and, as part of the deal, John Garner joins the board. The deal was initiated by Andy Parker of PwC Nottingham and John Heaphy of Freeth Cartwright Nottingham. Debt funding was provided by Lloyds TSB Bank. LDC were advised by BDO and Browne Jacobson and Lloyds Bank were advised by Eversheds.
Picture caption:
Top left: Andy Parker, director at Pricewaterhouse Coopers LLP
Top right: John Heaphy, partner at Freeth Cartwright
Bottom left: Colin McElhone, MD of Omega Red Group
Bottom right: John Garner, investment director at LDC
