TransLinc, a leading supplier of specialist transport solutions to local authorities, has undergone a buy-in management buy-out (BIMBO).
The deal sees private equity house RJD partners lead the fundraising on the transaction worth £50 million, with Clearwater Corporate Finance advising TransLinc on the deal.
Based in Lincoln, TransLinc is one of the country’s foremost suppliers of specialist vehicles to local authorities, primarily on a contract hire basis. The business also provides specialist transport services, particularly for passengers with special needs. Both markets are growing and fragmented, with significant potential for consolidation.
Further growth is considered likely as local authorities continue to look to outsourcing as a way of maximising efficiency. TransLinc’s business is underpinned by long-term embedded contracts with local authority clients, which typically range from three to ten years.
Originally part of Lincolnshire County Council, Translinc became independent in March 1998 when the business was bought out by the management and employees. Since then it has experienced rapid growth.
It now has a fleet of over 3,100 vehicles, a staff of almost 500 and a turnover of over £30 million.. TransLinc was named Best Hire Company of the Year in the Vehicle and Plant Awards 2006.
The buy-in management team comprises Paul Roberts, who will become the new managing director, David Foulds as commercial director and Margaret Serna as passenger services director. All three have relevant industry experience and are expected to drive operational improvements and implement a buy and build strategy. A new chairman will be announced in due course.
This latest deal will see the retirement of the existing managing director Brian West, and a partial equity release for Stephen Jago, finance director and John Soulby, sales and marketing director, both of whom will remain with the business.
Phil Burns, partner with Clearwater Corporate Finance said: “Since TransLinc’s original MBO in 1998 the business has grown into a recognised leader in services to the local authority sector which is a testament to the quality of the management team and employees under the stewardship of Brian West. The deal should give the business fresh impetus to further develop its offering to local authorities.”
Brian West, retiring managing director of TransLinc added: “I am delighted that TransLinc has been recognised as a market leader by RJD Partners. The additional investment, industry experienced management and wealth of talent and experience that already exists with current employees will lead to the continued success for the business.”