LDV Holdings Sold to GAZ Group, a Leading Russian Automotive Manufacturer
LONDON, July 31 -- Sun European Partners, LLP ("Sun European Partners"), the European adviser to Sun Capital Partners, Inc., today announced the sale of its affiliate LDV Holdings Limited ("LDV") to GAZ International Limited. Under the deal, LDV, the specialist manufacturer of the multi-award-winning range of Maxus light commercial vehicles, will become an important part of the GAZ Group's ("GAZ") development plans for international expansion. GAZ is Russia's second-largest automotive company and the seventh- largest manufacturer of commercial vehicles worldwide. The terms of the transaction were not disclosed.
An affiliate of Sun European Partners acquired the trade and assets of LDV in December 2005 when it led, advised, and structured a major refinancing package to rescue the business. Since that date, the business has been substantially restructured and continues to show performance improvements each month.
Philip Dougall, Managing Director of Sun European Partners, stated, "LDV was acquired in December 2005 when the business was only days away from becoming another high-profile collapse for the long-suffering UK automotive industry. Nonetheless, we strongly believed that its inherent value, particularly in the high-quality Maxus range of vehicles, could be unlocked through a rapid and fundamental overhaul of operations, working closely with a skilled and committed workforce.
"We are delighted that, through a combination of investment capital and the considerable operating experience of the Sun European team, we have been able to overcome many of the extremely difficult challenges that impacted the old LDV. Since the acquisition, LDV has enjoyed a 100% increase in the year- to-date sales of Maxus, has a strong order book underpinned by the Royal Mail, and has been able to introduce the new minibus product well ahead of schedule. These changes have created an operating platform that is attractive to a major automotive manufacturer such as GAZ and we are delighted to have found such a strong and committed buyer for the business."
Charlie Megan, Acting CEO, LDV Group Limited, commented, "We would like to thank the LDV management team and employees for their contribution in rebuilding and redirecting our business during this period of stabilisation. LDV is a well-loved and long established brand in the United Kingdom and we believe that GAZ will provide the necessary backing to support its future development in the UK and internationally. We would like to wish the LDV team and its new owners the very best for the future."
About LDV Group Limited
Founded in 1925 and headquartered in Birmingham, UK, LDV Group Limited is a designer, manufacturer, and distributor of light commercial vehicles. Its new van line, Maxus, won the "2005 Van of the Year" award and has recently been awarded "Fleet Van of the Year for 2006". For more information, please visit http://www.ldv.com/ .
About Sun European Partners, LLP
Sun European Partners, LLP is the European advisor to Sun Capital Partners, Inc., a leading U.S.-based investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 125 companies worldwide since Sun Capital's inception in 1995 in the Unites States, with combined sales in excess of $30.0 billion. For more information, please visit http://www.suneuropeanpartners.com/ .
About GAZ Group
Group GAZ is Russia's second-largest automotive company, operating in the vehicle manufacture and related sectors. It had sales in 2005 of US$3.5 billion and is the 7th-largest light commercial vehicle manufacturer worldwide, with 140 000 vehicles sales a year. GAZ Group was formed in 2005 when OJSC RusPromAvto's business assets were restructured. For more information, please visit http://www.gaz.ru/ .
Enquiries: Sun European Partners LLP Piers Hooper Managing Director Equus Group +44-207-223-1100 Paul Daccus Vice President Sun European Partners, LLP +44-207-929-5906