May Gurney, highway maintenance and environmental service supplier, has acquired TransLinc.
A cash consideration of £34.9m was paid for the equity and loan notes of the business. In addition, May Gurney will assume approximately £30.7m of customer contract-backed fleet financing obligations. The transaction is expected to be earnings and margin enhancing in the first year of acquisition. TransLinc’s £85m order book will supplement May Guerney’s existing £1.5bn worth of forward orders.
TransLinc employs over 400 staff and is led by MD, Paul Wood.
Originally part of Lincolnshire County Council, TransLinc provides specialist fleet management and passenger services to the public sector. Managing approximately 2,800 specialist vehicles from 20 locations for over 40 customers, the company has been in operation for over 30 years. Over 90% of its clients are in the public sector.
For the year ending February 28, 2011, it achieved earnings before interest, tax, depreciation and amortisation of £17.6m on revenues of £34.7m. At completion, TransLinc had total assets of approximately £53.6m.
Chief Executive of May Gurney, Philip Fellowes-Prynne, 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.”