MHA Moore and Smalley supports furniture components distributor’s MBO

A North West-based distributor of furniture and storage components has been acquired by its management team in a deal that will help the company continue to grow.

LDL, based in Hadfield, Glossop, specialises in supplying trade customers across the UK with components such as runner, lift and hinge systems for kitchen and bedroom applications.

It has been acquired by Ross Darroch and Simon Noble, the company’s finance and operation directors respectively, from its founder and managing director Simon Ogden who will retain a minority shareholding.

The buyers were advised by Lancashire-headquartered MHA Moore and Smalley’s corporate finance team led by head of corporate finance Andrew Feeke, alongside corporate finance manager Robert Holgate. Colin Abrahams and Hasan Hashmi provided tax advice.

The acquisition was funded through a combination of debt and invoice finance provided by HSBC.

Robert Holgate, corporate finance manager, MHA Moore and Smalley, said: “Simon’s leadership has seen LDL experience strong growth over the past 20 years. This transaction will allow Ross and Simon to build on the company’s solid foundations and continue this growth trajectory over the long term.

“We’re delighted to have helped to deliver a transaction which represents a great result for both parties.”

The company has grown steadily since it was established in 2003. It currently employs about 35 staff and has a turnover of around £14m.

The management buyout will enable Simon Ogden to step back from his full-time role while allowing the business to continue in its current growth phrase.

Ross Darroch, on behalf of the buyers, said: “LDL enjoys a market leading position built on service innovation, technical excellence and synergistic relationships with our brand partners.

“We’re incredibly excited to lead LDL through a new period of growth, building on these strengths to expand the existing market share and developing new opportunities with brand partners.

“Throughout what was at times a challenging transaction, MHA Moore and Smalley’s expertise was invaluable in giving all the stakeholders the confidence needed to progress”.

Umberto Vietri and Charlotte Gooch from AWB Charlesworth Solictors provided legal advice to the buyers.

Matthew Murphy, senior relationship manager, HSBC, said: “LDL is a business which has a history of sustainable and managed growth. Ross and Simon have a deep understanding of the business, the industry which LDL operates in, and have excellent relationships with the company’s customers.

"We see great potential for continued expansion going forward and HSBC is proud to provide funding to support that.”