May Gurney drives £65m TransLinc deal
Lincoln-based TransLinc has been sold to listed support services group May Gurney for £65m. The acquisition of vehicle supplier TransLinc includes its order book worth £85m.
TransLinc was formerly part of Lincolnshire County Council before being bought in 2007 by RJD Partners in a £50m deal. It now employs about 400 people and manages 2,800 specialist vehicles from 20 locations.
Under the terms of the transaction, Norwich-based May Gurney paid £34.9m for the equity and loan notes of the business. In addition, it will assume about £30.7m of customer contract-backed fleet financing obligations.
May Gurney said the large proportion of public sector contracts in TransLinc's order book (90 per cent) was an attractive prospect and said it was consistent with its "established strategy and business model".
TransLinc's acquired order book totals £85m, supplemeting May Gurney's existing £1.5bn forward order book.
At completion, TransLinc had total assets of about £53.6m.
The deal was advised by PwC in the Midlands.
Matt Waddell, head of corporate finance on the PwC team, said: "Having acted for RJD on the original acquisition in 2007 we are delighted to have acted for RJD and the management shareholders on this sale to a strategic trade acquirer.
"TransLinc is a clear market leader in its field and with the support of a larger support services player will now be ideally positioned to benefit from the opportunities its rapidly developing market is creating."
The vendors were advised by Eversheds and PwC.
Philip Fellowes-Prynne, chief executive of May Gurney, said: "This acquisition is a good strategic fit and is expected to be earnings enhancing in the first year. It brings into the May Gurney Group a portfolio of services and clients which are highly complementary to our existing business, augmenting our strong positions in highways and environmental services as well as further establishing the group as the leading support services business in the UK.
"We look forward to working with the TransLinc team to deliver continued positive returns to all our stakeholders".
