A SCOTTISH optical provider has secured a £15 million investment from the Scottish office of private equity investor Lloyds Development Capital (LDC) to accelerate its growth strategy.
The Duncan & Todd Group will use the financial award to embark on the next stage of its business plan. As part of the deal, it’s existing backer BGF will exit its minority stake.
Founded in 1972, Duncan & Todd Group operates through three divisions – retail, manufacturing and corporate – and employs more than 250 people across its national branch network and at its state-of-the-art ophthalmic lens laboratory, Caledonian Optical in Aberdeen. It also provides outsourced corporate eye care to more than 200 public and private sector customers, through its Smart Employee Eyecare brand.
Chief executive Frances Rus has overseen the growth of the company since leading a management buyout in 2007. Since then, and with investment from BGF, the business has invested heavily in its manufacturing capability and successfully expanded its national footprint from its original base in the north east of Scotland to 28 stores stretching from the Central Belt to the Highlands, including the 2020 Optical chain in Central Scotland.
For the financial year ending March 31, 2017, Duncan & Todd generated more than £16m of revenue and profit (EBITDA) of more than £2m.
BGF, the UK’s most active investor of patient capital for entrepreneurs and growing business, has backed Duncan & Todd since 2013. This deal represents BGF’s second successful exit in Scotland, following the acquisition of portfolio company Stevenswood Doors and Windows by Polyframe Trade Centres.
With LDC’s investment and support, the management team will embark on the next stage of its ambitious growth strategy to identify complementary acquisitions to further expand the business’s geographical footprint and to roll-out new complementary healthcare services including audiology following the appointment of Duncan & Todd’s first head of audiology with further growth planned.
Frances Rus, chief executive of Duncan & Todd, said: “With BGF’s support we have made significant progress over the past five years and we’re now at a pivotal point in our growth journey.
“LDC’s investment will provide both the financial backing and strategic support to allow us to expand capacity in some of our existing stores, roll out audiology nationally and make selective further acquisitions, helping us to take Duncan & Todd to the next level and bring our market-leading services to a larger customer base.”
The transaction was led by director Mark Kerr and investment director Colin Bennett at LDC in Scotland, who will join the board as non-executive director alongside non-executive chairman David Leatherbarrow. As former MD of BUPA Dental, David brings more than 25 years’ experience of driving growth in healthcare-focused retail.
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