LDC backs manufacturer in growth drive

A Leeds-based manufacturing firm is set to accelerate its growth plans after receiving significant investment.

ARC Building Solutions, a specialist in passive fire protection and thermal insulation products, has secured funding from LDC, the private equity arm of Lloyds Banking Group. 

Founded in 2008, ARC designs and manufactures certified cavity barriers and insulation systems that help developers deliver safer and more energy-efficient buildings. 

Its products are used across both residential and commercial developments, with demand increasing as safety and sustainability standards continue to rise.

Bosses say the deal will support ARC’s expansion strategy, which includes boosting production capacity, enhancing internal systems and growing its technical and sales teams to meet rising demand across the construction sector.

Neil Weeks, chief executive of ARC, said: “This is an important milestone in our mission to help the built environment to deliver more safe and sustainable buildings. 

“We’ve known the LDC team for some time and are confident that with their backing, we will have the firepower and strategic support we need to scale our growth and continue to deliver for our customers.”

The investment was led by LDC’s Yorkshire team, which will join ARC’s board alongside newly appointed non-executive chair Kevin Sargeant. 

Existing investor Newable will also reinvest in the business, continuing its support which stretches back to 2019.

Will Scales, investment director at LDC, added: “ARC has built an exceptional reputation for developing innovative, high-performance building safety products that are trusted by customers, and the business has an exciting future ahead. 

“As part of Lloyds Banking Group, we have deep heritage in the built environment, and we’re looking forward to working closely with Neil and the team as they turn their ambitions into reality.”

Newable and the ARC management team were advised by Momentum Corporate Finance and CMS.

LDC was advised by RSM, Shoosmiths, Dow Schofield Watts, PMSI and Collinson Grant.

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