Unquote

LDC backs Amberon MBO

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LDC has invested in the management buyout of Amberon, a UK-based provider of temporary traffic lights and roadworks signage.

A source close to the situation told unquote" that LDC has taken a majority stake via the transaction.

The funding package, including debt, amounts to £25m.

The GP said in a statement it will take a significant stake in Amberon alongside the company's management team, which is led by managing director Terry Musson and commercial director Daniel East. Amberon's founding shareholders have sold their stakes in the business via the transaction.

Under its new ownership structure, the company will expand beyond its existing geographical remit, which predominantly focuses on south-west England and Wales. It will look to open new depots in the Midlands, as well as the north-west, south-east and east of England.

Amberon will also explore potential bolt-on acquisitions and look to expand its range of services.

As part of the deal, former TDG CEO and Speedy Hire non-executive director David Garman has been appointed chairperson of the company, while former Watson Fuels financial director Guy Rutherford has been appointed as financial director. LDC investment directors Alistair Pendleton and Simon Hemley will also take seats on the board.

Debt
HSBC provided a debt package to support the transaction.

Company
Founded in 2002 and headquartered in Paignton, Devon, Amberon provides temporary traffic lights and roadworks signage. The company operates from 18 depots and has a fleet of 350 vehicles. It has a headcount of around 500.

LDC said in a statement that Amberon generated a turnover of £26m in its most recent financial year. In the year ending April 2016, the company generated revenues of £24m with EBITDA of £2.8m, according to publicly available records.

People
LDC – Alistair Pendleton, Simon Hemley (investment directors).
Amberon – Terry Musson (managing director).

Advisers
Equity – Deloitte (corporate finance); Burges Salmon (legal); EY (financial due diligence); Prelude (management due diligence); Intuitus (IT due diligence); Newton (operational due diligence); JLT (insurance due diligence); Virtus (health & safety due diligence); Hullbrook (commercial due diligence).
Vendor – BCMS (corporate finance); Boyce Hatton (legal).
Management – Deloitte (corporate finance); Blake Morgan (legal).

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