Case study

Microlease: Decade of support

Patient capital and 10-year private equity partnership supported 800 per cent increase in enterprise value.

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Sector
  • Support services
  • Technology, Media, Telecoms

Microlease is a total solutions provider for electronic test equipment.

Employees: 370

Deal type
  • Management buyout
Deal value

£30m

Exit type
  • International trade sale
Exit date

31/01/2017

The Team
LDC Region

Microlease’s specialist testing equipment and solutions are used across a broad range of industries including telecommunications, semi-conductors, aerospace, defence, automotive and manufacturing.

Expansion through acquisition

LDC backed the £30m management buyout of the business in 2006.

The management team subsequently bought and integrated six complementary businesses in the UK, US and Europe, growing revenues and profits almost six-fold over the 10 years to 2016.

Our 10-year partnership with LDC enabled us to transform the business from a small, UK company to an international player with unrivalled infrastructure and breadth of expertise.”
Nigel Brown, CEO
Microlease

Flexible, long-term partnership

While the decade following the 2008 economic downturn was challenging for the UK manufacturing sector, Microlease’s story is proof there are still success stories to be found.

We’re proud to have supported the management team as our flexible partnership helped the company to increase its enterprise value by 800 per cent.

In 2017, following a decade of support, Microlease was acquired by US-based Electro Rent Corporation to create a global leader in its field.

The sale generated a 3.5x return for LDC.

My experience was that we invested heavily in the first twelve months with the private equity backer we had and that paid dividends over the course of the development of the business.”
Nigel Brown, CEO
Microlease