Private equity investor LDC’s investment in national driver and logistics recruiter Driver Hire “continues the clear trend of private equity buying from each other than investing into new businesses in the sector”, according to Tim Evans, managing director at M&A advisory house, Boxington Corporate Finance. 

LDC has invested an undisclosed sum for a significant shareholding, providing an exit for Spirit Capital who backed the business in 2004 (as Aberdeen Murray Johnstone Private Equity). Debt funding was provided by Yorkshire Bank Corporate and Structured Finance.

Chris Chidley, chief executive of Driver Hire, says: “Securing the financial backing and support of a proven investment partner such as LDC is a very positive endorsement for our business. Their scale, reach and expertise will provide us with the support to create further growth opportunities for the group.

“This is excellent news for our employees and our franchisees, all of whom will benefit directly from increased long-term investment in our business and our brand.”

John Swarbrick, a senior director at LDC, says: “Driver Hire is a robust business led by a proven management team. The commitment of its franchisees drives exceptional levels of customer service quality.

“We believe the company has numerous potential organic growth opportunities and so LDC is delighted to have the opportunity to back the team and provide them with the support to fulfill their ambitions for the business.”

Evans adds: “Competing blue collar trade buyers remain cautious for now but are intending to return to the market in 2012 — including some from overseas.”