Ashtead Group has announced its decision to acquire Eve Trakway, a vehicle and pedestrian equipment maker backed by mid-market investor LDC.
The provider of rental equipment will pay £28 million in cash, plus £7 million in potential earn-out, to acquire the company.
The deal provides an exit to LDC, the private equity division of Lloyds Banking Group, which acquired a minority stake in Eve Trakway in June 2008. The firm is to generate a 2.5x on its investment through the planned sale.
Based in Chesterfield, UK, Eve Trakway provides footpaths, bridges, crowd control barriers and ground protection systems for rail, communication and utilities infrastructure projects. The company has been involved in a diverse range of high-profile projects including Live 8, Glastonbury, the London Marathon and London 2012 Games.
Under LDC’s ownership, Eve Trakway increased its revenues by 58 percent to £26 million for the 12 month ending March 2012. This has been achieved through extension of the company’s products and services, as well as three complementary bolt-on acquisitions.
The transaction will see Eve Trakway join the London-listed subsidiary of Ashtead, A-Plant, which is the UK’s second largest equipment rental company with 110 outlets.
It comes after a lively year for LDC, which closed 18 deals in 2012 for a total of £280 million. The firm also has been active over the past few months, with seven investments recorded since the beginning of the year.
These have included backing the £24 million acquisition of NRS Healthcare earlier this month, as well as the £50 million MBO of restaurant group D&D London in April.
LDC, which receives the entirety of its equity financing from Lloyds, has around £2 billion under management.