Engineering firm backed by LDC for Mids deal

Engineering firm backed by LDC for Mids deal

An engineering consultancy has been handed a multimillion-pound investment from private equity house LDC to fund its expansion, which includes the proposed acquisition of a Midlands counterpart.

The investment into Patrick Parsons will support the purchase of THDA. The Birmingham-based business specialises in the design of civil engineering infrastructure for development schemes such as major highways, roads, earthworks modelling and flood risk assessments. The deal is set to further strengthen Patrick Parsons’ national capabilities in this market.

Patrick Parsons employs more than 250 specialist engineers and provides design services across civil, structural, geo-environmental and M&E disciplines to blue-chip clients in the residential, commercial and infrastructure sectors.

Some of its most notable projects include consulting on restoration works at Durham Cathedral and developing the world’s first modular flat packed white water course in Glasgow.

Under the leadership of managing director Peter Stienlet and board directors Mark Turner, Grant Richardson, Doug Tidswell, Conor Murphy and Nick Beckwith, Patrick Parsons has enjoyed significant growth over the past ten years, both organically and through a targeted acquisition strategy. Its turnover has increased from £1m in 2007 to £18m today, with the company now operating from eight sites across the UK.

LDC is backing the management team to continue its growth, with experienced engineer Robert Horvath set to join the board of the business as non-executive chairman as part of the deal.

Stienlet said: “We have grown significantly and this is undoubtedly down to the hard work and commitment of our people.

“It was vital that we found an investment partner that understood both our vision for growth and the importance we place on this culture. In LDC, we have a highly-experienced partner that is backing us to continue our growth journey, and helping us to invest in the future of our business.

“The acquisition of THDA is the next step on this journey and puts a marker in the sand for our commitment to the infrastructure sector. The move will allow us to enhance our presence in Birmingham and sees the firm establish itself as a fully multi-disciplinary practice.”

The deal was led by investment director Ben Snow and investment origination Zara Lane at LDC in Newcastle.

Snow said: “Patrick Parsons has an exceptionally strong management team that has successfully spearheaded the growth of the business, while retaining the values of a smaller sized firm.

“The acquisition of THDA is an exciting development for both businesses. It allows Patrick Parsons to further strengthen its service line and create more opportunities for both its employees and customers in a market that shows strong growth prospects as infrastructure investment continues to rise.”

John Garner, head of LDC in Yorkshire and the North East, added: “We’re committed to backing ambitious management teams in the North East and Yorkshire and this latest deal signals our intent to continue investing in the region.

“We’ve expanded our team on the ground and with a healthy pipeline of activity there’s no doubt the region will play an important role in our commitment to invest £1.2bn nationally over the next three years.”

LDC was advised by BDO, Muckle and KPMG. Commercial due diligence was provided by CIL.

Patrick Parsons was advised by Cavu Corporate Finance and Mincoffs Solicitors.

 

Source Insider Media.