The private equity arm of the Lloyds Banking Group, LDC, has invested an initial £5.9m to back the management buyout of Modelzone, a UK retailer in the model and hobby sector.
The company has two businesses – Modelzone, which specializes in the UK market, and Amerang, which deals with the overseas market. Led by Modelzone CEO David Mordecai, the money raised from the MBO, as well as a further £3.6m to be invested by LDC over the next three years, will be used to build on the company’s market leading position and carry out an accelerated retail roll-out plan, as well as enable it to make acquisitions.
LDC has been working with Modelzone of the last eight months in the build-up to the MBO. In that time, the firm has introduced Terry Norris as non-executive chairman, and non-executive directors Julian Tucki and Paul Worthington.