Sovereign Capital acquires DLD for GBP25 million

Investee Company – Davies, Laing & Dick Limited (UK)

Investee Company Business Type – Private education business

Type of Financing – Institutional buyout

Equity Providers – Sovereign Capital Limited

Equity Leader (Individual) – Ryan Robson & Andrew Hayden, both directors of Sovereign Capital

Debt Providers – Bank of Scotland Property Finance Unit

Debt Type – N/K

Debt Leader (Individual) – Bob Hay & Ian Tate

Equity Amount – Undisclosed

Total Deal Value – £25 million

Other Advisors – Cavendish, Deloitte & Touche, Marriot Harrison and Olswang

Comments – Sovereign Capital, a leading UK private equity investor has led the £25 million institutional buyout of private education business, Davies, Laign & Dick Limited (DLD). This deal is the second investment to come from the Sovereign Capital Limited Partnership III fund, which closed in April 2002. As part of the deal Andrew Hayden and Ryan Robson, both directors of Sovereign Capital, will join the board of DLD.

The DLD Group has been a provider of private education at its schools and colleges throughout Britain since 1931. The Davies, Laing & Dick school in Notting Hill, Central London, was the founding institution of the DLD Group, which now comprises 12 schools spanning the age range – from nursery, preparatory and secondary to 16 plus.

This deal will provide DLD with substantial funds for expansion, both organic and acquisitive, while also enabling the group to continue to develop the philosophy of providing excellence in education.

Angus Fraser, group chairman of DLD, said: “This marks an exciting new phase in the development of DLD and brings tremendous potential for the growth and development of our schools. Sovereign’s approach has been excellent and we are confident that the business and its values will be safe in their hands.”

Ryan Robson, a director of Sovereign Capital, said: “DLD has been a family-owned business and as such its directors were particularly attracted to Sovereign’s knowledge and innovative approach to the sector. We are delighted to have acquired the DLD education services group which is well known in the sector for delivering a first class education and we are determined to develop the group so that more children can have access to this quality.”