PRIVATE equity investor LDC has exited its investment in Eve Trakway in a £28m sale to Ashtead Group.
Ashtead Group, the global provider of rental equipment, has acquired Accession Group, which includes its principal trading subsidiary of Eve Trakway, a supplier of temporary access systems and services, for a cash consideration of £28m, plus £7m earnout.
The acquisition provides an exit for Eve Trakway’s Leeds-based private equity investor, LDC, which took a minority equity stake in the business in June 2008 and represents a money multiple of 2.5x.
The Chesterfield-based company, which also has offices in Lanark and Wimbledon, supplies roadways footpaths, bridges, crowd control barriers and ground protection systems for use in major rail, communication and utilities infrastructure projects and high-profile outdoor events.
Eve Trakway’s products and services have supported a range of projects including Live 8, Glastonbury, the London Marathon and London 2012 Games.
The acquisition will see Eve Trakway join Ashtead Group’s subsidiary, A-Plant, which is the UK’s second largest equipment rental company with 110 locations.
Under LDC’s ownership, Eve Trakway increased its revenues by 58 per cent to £26m in the financial year ending March 2012.
John Garner, director and head of LDC in Yorkshire and the North East, said: “Since our investment, we have worked closely with Eve Trakway’s management team to support its buy and build strategy, and extend the range of products and services that the business offers.
“This has been recognised in a number of high profile contract wins and significant growth. The sale to Ashtead Group plc is an excellent outcome for LDC and the business, and we wish the management team every success in the next phase of the company’s development.”
The shareholders and LDC were advised by David Hardless and Ian Hale from Park Place Corporate Finance. The Leeds office of Squire Sanders advised the shareholders on this transaction. The team was led by corporate partner Paul Mann who was assisted by Craig Pettit. Tax advice was provided by partner Peter Morley.