Lloyds Development Capital (LDC), the private equity arm of Lloyds Banking Group (LON:LLOY), has taken a stake in a pharma communications company. The move came as the division also invested in Rush hair salon this week.
Lloyds’ share price meanwhile has surged in London in today’s session, having added 1.77 percent to 65.33p as of 14:23 GMT, outperforming the broader market, with the benchmark FTSE 100 index currently 0.48 percent better off at 7,184.67 points. The bank’s shares are up by more than four percent so far in 2017, but continue to trade below the government’s break-even price of 73.6p.
LDC announced in a statement today that it had backed the management buyout of Fishawack, a specialist provider of scientific communications services to global pharmaceutical companies. The deal values the business at £38 million, with the private equity group having committed further equity to accelerate Fishawack’s growth strategy, including potential acquisitions.
The Telegraph noted in its coverage of the news that while LDC invests in medium-sized businesses across all sectors, it has backed several pharma and healthcare companies in the past, including Synexus, one of the world’s largest clinical trials patient recruitment firms.
Earlier this week, Lloyds’ private equity arm granted a £16-million minority investment to hair salon Rush. The investment is expected to help accelerate Rush’s national expansion of the brand as the company plans to accelerate the roll out and almost double its salon count over the next four years. The group currently has 85 salons mainly concentrated in London and the South East.
LDC notes that the UK hair market is currently worth £6.7 billion and is forecast to grow at two percent per annum over the next five years.
As of 14:59 GMT, Wednesday, 25 January, Lloyds Banking Group share price is 65.41p.
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