Lovells advises on acquisition of driving instructor business

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Lovells has advised private equity firm Kelso Place Asset Management ("Kelso Place") on the acquisition of the business and assets of LVG Limited, including the RED Driving School and RED Instructor Training businesses from the administrators of LVG Limited. LVG Limited entered administration on 16 February and its business was bought by Kelso Place on 19 February 2010.

01 March 2010RED is the UK's leading provider of vocational training within the driving instructor industry. The other businesses of LVG which were bought as part of the deal include RED Fleet Training, Practical Driving Instructor Aids (PDIA), the accountancy service FBTC and the trade magazine adiNews. The combined businesses have revenues of approximately £40 million and 400 employees. In the last five years alone, RED has helped more than 10,000 people pass their DSA exams and start new careers as driving instructors.

Kelso Place has made a considerable investment in the RED brand and businesses from its £100 million Special Situations Fund through Driving Results Limited, a company incorporated for the purposes of the transaction.

The Lovells team was led by corporate of counsel Amit Nayyar with advice on the insolvency proceedings of LVG Limited provided by partner Joe Bannister. Support was provided by corporate associate Michael Stewart and insolvency and restructuring associates Natasha Watson and Ed Mathison. Vanessa Hogan provided advice on employment matters and Stephen Elliott advised on property issues arising in relation to the transaction.

This deal is the third transaction on which Lovells has provided advice to Kelso Place and its investee companies in the past three months.

Philip Weston, partner at Kelso Place said of the deal:
“RED is a very strong, stable and profitable business, which experienced a short term funding difficulty when its financing facilities were changed suddenly. We have made a significant cash investment in RED in order to solve its funding problem and to ensure that it is able to continue operating successfully for the long term.”

Amit Nayyar, Lovells' of counsel said:
"We are delighted to have assisted Kelso Place on this deal which secures the future of the UK's largest operator of driving instructor training colleges and one of the UK's leading driving schools."

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