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LDV to expand with £90m

LDV, the light commercial vehicle manufacturer, has secured £45 million from an equity syndicate in a bid to drive forward expansion. The syndicate, which is being led by 3i, is made up of European Acquisition Capital and Baring English Growth Fund and takes the figure for total funding raised to £90m.

The investment package, which is subject to shareholder approval, will enable LDV to complete the development of its new range of light commercial vehicles, install a brand new manufacturing facility at its Washwood Heath site in Birmingham and launch the new range of vehicles in 2004.

It comes after LDV secured the intellectual property rights from Daewoo for the manufacture and global distribution of a new range of light commercial vehicles. LDV has also recently acquired tooling, valued at £125 million enabling the product to be introduced in 2004.

Allan Amey, LDV's chief executive, says the move is a massive boost for dealers, suppliers and the company's Midlands-based workforce. “With this financial restructuring package fully in place LDV can move forward and deliver a long-term strategic plan. Over the next 18 months, we will invest £90m to launch our new range of vehicles,” says Amey.

The vanmaker was advised by N M Rothschild and Sons, Eversheds and Dickson Minto to help develop the funding package and is holding discussions with potential distribution partners to maximise global sales for its new product range.

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