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.