Clearwater International advises LDC on the MBO of TXM Plant

Clearwater International has advised private equity firm LDC on the management buyout of TXM Plant.

TXM Plant, the UK’s largest supplier of road rail vehicles, has completed a management buyout to accelerate its growth and invest in its fleet. TXM Plant, which is headquartered in Milton Keynes, provides road rail vehicles and associated attachments to Network Rail and its major contractors involved in maintenance, track renewal and infrastructure projects.

The business operates from nine strategically located regional depots and is able to support customers on a national basis.

TXM Plant has more than doubled its turnover in the last three years to €57m, securing several major contracts. During this period, it has secured Principal Contractor status and recently secured a four year framework contract to undertake track renewal on the Tyne & Wear Metro, which is operated by Nexus.

The management buyout was backed by leading mid-market private equity firm LDC for an undisclosed sum. The investment comes amidst the UK’s biggest ever period of investment in rail infrastructure, which includes major electrification schemes such as; Great Western, Thameslink, and Crossrail, Europe’s biggest construction project. Construction of the €64bn HS2 project is expected to start next year and Crossrail 2 recently received Government support.

Following the transaction, TXM Plant intends to accelerate its growth by investing heavily in its fleet and expanding its range of value-added services. The buyout was led by the company’s managing director Gareth Richardson, business development director Rob Killen and finance director Patrick Matthews.

Clearwater International’s Debt Advisory team advised LDC on the transaction, led by partners Mark Taylor and Rob Britton and senior associate Mark Gillingham. A bespoke debt package was provided by PNC Business Credit, a leading UK Asset-Based lender, part of The PNC Financial Services Group, Inc., one of the largest financial institutions based in the US.

“After a period of solid growth, now was the right time to accelerate the next stage of the business’ growth journey. LDC has an impressive track record of supporting management teams and the deal provides us with the platform to cement our market-leading position. Developing first-class rail infrastructure is a major national priority, and we are well placed to be at the centre of many of these exciting projects as lead partners to our clients.”

Gareth Richardson, Managing Director, TXM Plant

“It’s been great working with Clearwater and having their guidance and expertise throughout the process. Clearwater added significant value through arranging an attractive, well-structured financing package to help fund the investment, and in helping us to assess our likely exit options through a commercially focused exit review. The team undoubtedly has extensive knowledge of current debt markets as well as valuable M&A experience in the specialist plant hire sector.”

John Green, Investment Director, LDC

“TXM has expanded significantly over recent years. This investment allows the business to undertake a further period of growth and strive as a market leader within rail operations. We wish them every success going forward with a supportive funder base.”

Mark Taylor, Head of Debt Advisory, Clearwater International