Lyceum Capital, the UK private equity firm, has backed managed print and document management services business DMC Canotec for an undisclosed sum.
The deal is the firm’s first platform investment this year and its first since calling time on fundraising in January and going deal-by-deal. The firm has backed five bolt-ons this year, including Sabio’s £10m (€11.3m) add-on of Bright UK.
A number of Lyceum’s existing limited partners, as well as new institutional investors backed the DMC transaction.
DMC Canotec was established in 1991 by chief executive Jon Hill and business partner Justin Nicholson. Simon Davey joined the company as managing director in 2016 and revenues have grown by almost a quarter since his appointment. Lyceum sees opportunity to build DMC into a consolidator of what is a fragmented market, with 300 companies in the UK.
Luke Kingston led a deal team of Tom Maizels, Matt Morris and Simon Hitchcock.
“Following Lyceum’s restructuring in January, we are delighted to have concluded the DMC investment. The transaction demonstrates the strong support of both key existing and new investors for the Lyceum platform,” managing partner Hitchcock said. “Our pipeline of new platform and add-on investments remains very strong and we look forward to concluding further deals later in the year.”
DMC is an independent supplier of print, archive and document management systems in Europe. The company is based in Croydon and employs more than 170 people.
Lyceum were advised by Deloitte, CIL, Harrison Clark Rickerbys, Rothschild, Spectrum Corporate Finance and Forward Corporate Finance. DMC were advised by Harbottle & Lewis and Bryden Johnson.
Lyceum invests in business services and technology companies, writing cheques in the £10m to £50m range for companies operating in fragmented markets.