LDV, the UK-based light commercial vehicle manufacturer specialising in vans, has secured £45 million growth funding from an equity syndicate led by venture capitalist 3i. Comprising European Acquisition Capital and Baring English Growth Fund, it will complete total funding raised of £90 million.
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The new investment package, subject to shareholder approval, will enable LDV to complete development of a 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.
Earlier this year the company announced it had secured intellectual property rights from Daewoo for the manufacture and global distribution of a new range of light commercial vehicles. More recently LDV acquired tooling, worth £125 million, enabling the new model line to be introduced in 2004.
LDV chief executive, Allan Amey said: “I am absolutely delighted for our workforce, our suppliers and LDV’s dealer network. It is also a massive boost for West Midlands manufacturing and the UK automotive industry. With this financial restructuring package fully in place LDV can now move forward, with confidence, to deliver its long-term strategic plan.
“Over the next 18 months we will invest £90 million to launch our new range of vehicles on the global stage. Today’s announcement creates the platform for growth for the next 10 years.”
LDV is currently talking with potential distribution partners to maximise global sales of its new models.
