ARC secures LDC backing to scale passive fire and thermal solutions

ARC and LDC complete investment agreement

ARC Building Solutions has secured investment from LDC to support the growth of its passive fire protection and thermal solutions business in the UK.

The company said the deal backs its management team, led by CEO Neil Weeks, and is intended to fund increased production capacity, improved systems and expanded sales and support operations.

The transaction involves investment from LDC, a private equity investor that is part of Lloyds Banking Group.

Newable, a specialist UK small and medium-sized enterprise investor that has supported ARC since 2019, will reinvest alongside LDC.

ARC is based in Leeds and supplies products and systems for residential and commercial developments.

Passive fire protection focus for growth

According to the company, ARC manufactures certified and tested cavity barriers that provide up to four hours of fire integrity.

Its range also includes thermal insulation products designed to support both fire safety and energy efficiency outcomes.

The business provides technical system solutions that enable residential and commercial property developers to create buildings for people to live and work in.

ARC was founded in 2008 and has recorded long-term growth, supported by demand for safety critical and environmentally focused solutions.

The company plans to use the new investment to expand production capacity and enhance its systems so it can continue to serve its customer base.

Neil Weeks, CEO 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.”

Board appointments and investor track record

The investment was led by LDC’s Yorkshire team, including Investment Director Will Scales, Partner and Head of Yorkshire Dan Smith and Investment Executive Connie Smith.

Following the transaction, Will Scales and Dan Smith will join ARC’s board as Non-Executive Directors.

They will sit alongside Kevin Sargeant, who joins as Non-Executive Chair.

The company said Kevin Sargeant brings nearly 30 years of board experience, including roles at Volution, Ventilair Group, Nuaire, Flexicon and Aqualisa.

LDC reported that in the last decade it has invested £660m in 35 industrial businesses with a combined enterprise value of £1.9bn.

Its investments span building products, automotive, aerospace, chemicals, packaging, manufacturing and energy and renewables.

In May 2024, LDC invested in Integrated Doorset Solutions Group, a testing, inspection, certification and compliance business in the fire door sector.

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.

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.”

How ARC’s investment plans affect project delivery

The investment in ARC’s passive fire protection and thermal insulation business is relevant for architects, building services engineers and developers involved in specifying products for new-build residential and commercial schemes.

The company manufactures tested cavity barriers with defined fire integrity performance and provides technical system solutions, so changes in its capacity and systems may influence design choices and coordination on future projects.

For system installers, fire-protection contractors and electrical contractors, the planned increase in production capacity and enhancement of support functions could affect product availability, technical assistance and site-level coordination when installing cavity barriers and related fire-safety measures.

Facility managers and risk assessors working with existing or planned ARC installations may also track the company’s investment plans and management changes, given its role in supplying safety critical and energy efficiency focused components for the built environment.