LDC backs £19.55M MBO of ANSA and Independent Inspections from Mavinwood plc

LDC, the leading mid-market private equity house, is backing the MBO of ANSA Holdings Limited (“Ansa”) and Independent Inspections Holdings Limited (“Independent”) from listed parent company Mavinwood plc in a transaction worth up to £19.55million. The transaction remains subject only to Mavinwood plc shareholder approval.

ANSA, based in Oldham, and Independent, based in Preston, are market leading providers of claims validation, management and fulfilment services on behalf of the UK’s leading insurance companies. Customers include Direct Line, Norwich Union, Legal & General and Zurich Financial Services.

LDC, the private equity division of the Lloyds Banking Group, is investing £11.6million in the new company and will hold a majority equity stake. The management team, led by Chief Executive Steve Watkins, will also become shareholders at completion.

The deal was led by Jonathan Bell and Carl Wormald from LDC’s Manchester office. Subject to completion, Jonathan Bell, Investment Director at LDC, will take a seat on the new company’s board.

Commenting on the investment, Steve Watkins, Chief Executive, said: “LDC’s investment reflects the confidence we both have in our future potential and, looking forward, their support will allow us to strengthen our market leading position, invest for future growth and continue to provide quality service for all our customers, existing and new.”

Jonathan Bell, Investment Director at LDC, said: “Essentially, we are backing a first rate management team who have built two market leading businesses. We believe both companies are not only resilient to the challenging economy, but also well placed for future growth in their chosen markets through a continued focus on excellent customer service.”

The proposed transaction is being supported by a £10.6million package of senior debt and working capital facilities from Yorkshire Bank.

Recent investments by LDC in 2009 include Nuclear Engineering Services Limited (“NESL”), a niche engineering solutions group focusing on the nuclear, marine defence and other specialist industrial sectors; Cranswick Pet & Aquatics; Snell & Wilcox and ProBel (merger) - two leading providers of technology to the international broadcasting market; and Quantum Specials, one of the UK’s largest suppliers of tailor-made medicines to the pharmaceutical industry.

ENDS 9 June 2009