U.K.-based private equity firm invests £11.5 million with Sala International.
Lloyds Development Capital (LDC), a mid-market private equity arm of Lloyds Banking Group, has invested £11.5 million (US$18.4 million) in Sala International, the seventh largest document archiving and records storage business in the United Kingdom. The investment gives LDC a majority stake in the document storage firm.
Sala International, founded in 1994, handles more than 30 million documents yearly. The company also manages more than 10 million “live” records. Tomas Gronager has been appointed CEO and will lead the senior management team.
According to a press announcement, under Gronager’s leadership, Sala is seeking to achieve more ambitious growth. Gronager says the strategic vision, backed by LDC, is to develop an integrated records management (IRM) outsourcing solution consisting of archiving, scan-on-demand and software as a service and destruction.
As well as growing organically, Sala is seeking acquisitions to bolster its document destruction services, with LDC helping to secure funding.
Gronager will be supported by Sala’s existing management team of Michael Davies, Trevor Cook and Trevor Basset.
Sala operates from Shoeburyness, Essex, U.K., and recently opened a new facility near Leeds.
“Sala is an excellent company and provides a great platform for the growth strategy I am keen to pursue,” Gronager says. “With the backing provided by LDC and the help of its excellent Value Enhancement Group to deliver operational efficiencies and bed down acquisitions, I am confident that we can deliver on the vision of developing a one stop shop, integrated records management offering, that will help transform Sala into a truly national and potentially international player and deliver great benefits for clients.”