Lloyds to invest £500m in manufacturers

The private equity arm of Lloyds Bank yesterday pledged to invest £500 million in specialist manufacturing businesses supplying Scotland’s thriving oil and gas sector.
Lloyds Banking Group. Picture: PALloyds Banking Group. Picture: PA
Lloyds Banking Group. Picture: PA

Around £50m of that total is expected to flow towards mid-sized Scottish firms by the end of next year.

The investment will also include manufacturers in the aerospace and power generation fields, and will be aimed at British businesses in the £10m to £150m enterprise value range.

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Mark Kerr, oil and gas director at Lloyd’s investment arm, LDC, said: “Last year was highly significant for LDC’s manufacturing initiative and we completed a number of exciting deals in the sector, including four in oil ­services.

“This momentum supports our belief that high quality UK-based manufacturing companies, particularly in the oil and gas sector, with an ambitious management team, represent good investment opportunities.”

LDC completed seven investment transactions into manufacturing and specialist engineering businesses last year, including Aberdeen-based oil services company Ramco.

It also realised capital gains of more than £95m from the sector, including a strategic exit from Motherwell-based aerospace engineering group MB Aerospace.