16th Jan 2015 13:19
LONDON (Alliance News) - The private equity arm of Lloyds Banking Group PLC Friday said it is to acquire the National Exhibition Centre Group in a deal valuing the business at GBP307 million.
LDC, the group's mid-market private equity house, has entered into a binding agreement to acquire the NEC Group from Birmingham City Council.
According to NEC Group, GBP15 million of the GBP307 million valuation will be in the form of a loan note, including the value of the leases of the Hilton Metropole and Crowne Plaza hotels on the NEC site, which are being retained by Birmingham City Council.
The deal includes the National Exhibition Centre, the Genting Arena, the Barclaycard Arena, and the International Convention Centre, as well as the NEC?s other commercial activities including The Ticket Factory, specialist catering business Amadeus, and the NEC?s third-party venue management operations.
As part of the acquisition, LDC will also acquire Birmingham City Council's stake in Genting Resorts World at the NEC site and a new GBP200million integrated leisure and entertainment complex.
"The NEC Group has developed significantly over recent years, and we?re delighted to be working with such a strong and experienced team to deliver the NEC?s next exciting phase of development," Martin Draper, LDC's chief executive, said in a statement. "We also look forward to working closely with both Birmingham and Solihull Councils to support their plans at both the NEC and City Centre sites which include the airport expansion, redevelopment of the Paradise Circus area and in connection with the HS2 project."
Paul Thandi, chief executive of the NEC Group, said that management and staff will now work alongside LDC in the next stage of its development.
"From the start, LDC has understood the NEC Group?s potential with new ways of deploying investment in resources and capital to the benefit of the business, our customers, and our markets. Their support will allow us to capitalise on our market-leading position, and our team look forward to building a new phase of organic and acquisitive growth," Thandi said.
LDC said it was supported on the deal by Macquarie, which led and arranged bank facilities, Plural Strategy Group, and a number of Birmingham-based advisers, including Eversheds and Deloitte.
The management team was advised by Catalyst Corporate Finance and Gateley in Birmingham.
By Samuel Agini; [email protected]; @samuelagini
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