Shoosmiths advises LDC on strategic investment into ARC Building Solutions

Shoosmiths has advised private equity investor LDC on its acquisition and investment into ARC Building Solutions, a market leading provider of passive fire protection and thermal solutions for the built environment.

Headquartered in Leeds, West Yorkshire, ARC Building Solutions (ARC) manufactures certify and test cavity barriers, offering up to four hours of fire integrity, alongside thermal insulation products that support fire safety and energy efficiency. Its systems are used by a number of residential and commercial property developers to create safer, more sustainable spaces for people to live and work.

LDC's funding will be used to support ARC's management team, led by chief executive Neil Weeks, on the business' growth strategy, underpinned by investment in increased production capacity, enhanced systems and sales and support teams.

Will Scales, investment director at LDC, added: "ARC has built an exceptional reputation for developing innovative, high-performance building safety products that are trusted by customers, and the business has an exciting future ahead. 

"As part of Lloyds Banking Group, we have deep heritage in the built environment, and we're looking forward to working closely with Neil and the team as they turn their ambitions into reality."

Shoosmiths corporate partner James Foster led on the deal and was assisted by corporate principal associates Natalie Redfern and Sophie Davies, as well as associate Emily Egan. Assistance on the tax aspects of the transaction was provided by corporate tax partner Laura Board, with support from legal director Laura Gould, principal associate Caroline Airey, associate Manpreet Shoker, and trainee solicitor Michael Scaife. In addition, assistance on the banking aspects of the transaction was provided by legal director Charlotte Thomas, with support from senior associates Kat Raanan and Jonny Adamson and associate Esse Ejere. 

Foster said: "With this investment from LDC, ARC is set for further growth and acceleration in its mission to help the built environment to deliver more safe and sustainable buildings.

"With our strong private equity expertise and collaborative team approach, we’re pleased to have worked with our long-term client, LDC, again, as they expand their portfolio of investments".

In the last decade, LDC has invested £660m into 35 industrials businesses, with a combined enterprise value of £1.9bn. It has made successful investments across key sub sectors including building products, automotive, aerospace, chemicals, packaging, manufacturing, and energy and renewables.

This transaction adds to Shoosmiths’ strong track record in advising private equity investors on strategic acquisitions and investments including the associated funding.