Member Article

MBO for Castleford’s Stroma

Stroma, the Castleford-based supplier of software applications and services to the energy and operational efficiency markets has been involved in a management buyout, backed by mid-market private equity house LDC.

LDC’s investment will enable the company to both capitalise on ever tightening regulatory requirements and also introduce new software apps which will markedly improve customers’ operating efficiency.

Based in Castleford, Stroma was established in 2002 by Matt Ferguson, Rob Coxon and Steve Turner. The business now employs over 200 people, including over 40 software developers, across two divisions.

Stroma serves a base of over 4,000 clients, including organisations from SMEs to major utility firms.

The deal was led by LDC investment directors Simon Braham and Chris Wright.

Simon commented: “Since launching Stroma in 2002, Matt Ferguson and his team have very successfully driven the evolution of the business from a technical consultancy to a software-led certification provider to the UK energy efficiency industry.

“Stroma is widely recognised as a high quality training provider that has developed leading software apps that reduce the complexity of reporting and compliance requirements for its users.”

Matt Ferguson, co-founder of Stroma and Managing Director of Stroma Certification, said: “After a decade of developing Stroma and establishing our leading position in the market, it is the ideal time to bring in an experienced investment partner.

“The team at LDC not only offers significant financial support, but also experience that will help us drive further growth in the future and especially as we bring our new software apps to market.”

RBS provided the debt finance in support of the transaction. Altium and DWF advised the vendors whilst Clearwater and Addleshaw Goddard advised LDC. Dow Schofield Watts Transaction Services team provided financial due diligence on the deal.

Nationally, this deal brings LDC’s new investment to over £100 million with a further £30 million supporting the growth plans of existing portfolio businesses.

This was posted in Bdaily's Members' News section by Clare Burnett .