VC-backed Red Driving School acquires NFE

Katharine Hidalgo
16 March 2020

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Red Driving School, which is backed by Trimountain Partners, Ashridge Capital and Downing, has been acquired by NFE Group.

Red's backers did not provide any additional equity to make the acquisition, and Red did not take out any debt for the deal.

NFE's founder, Andy Neale, will continue to lead the company. David Sherratt, CEO of Ashridge Capital, said: "Red has a fledgling, but fast-growing, fleet management business, which will merge with NFE's existing capabilities, with Andy Neale leading operations for the division."

Neale does not have equity in the deal, but may receive further compensation through an earn-out.

Trimountain, Ashridge and Downing supported the management buyout of driving school operator Red from Kelso Place Asset Management in April 2019. Trimountain led the deal, while Ashridge jointly manages the investment. The three investors each have a board seat.

Sherratt said: "Our strategy for Red mainly surrounds organic growth and buy-and-build, particularly in the fleet management space, so we're likely to make more bolt-ons in the future."

Company
NFE is a provider of fleet driver training services across the UK. Founded in 2003, NFE offers a wide range of training products including risk assessments, advanced driver training, trailer training and stress management. NFE is based at Donington Park in the East Midlands. It employs fewer than 20 full time staff in addition to a number of subcontracted training professionals. It generates revenue of less than £25m.

People
Trimountain Partners – Ali Khanbhai (partner, co-founder).
Ashridge Capital - David Sherratt (founder, CEO).
Red Driving School – Ian McIntosh (CEO).
NFE Group – Andy Neale (CEO).

Advisers
Acquirer – Muckle (legal); UNW (financial due diligence).
Company – Avondale (corporate finance); Gunnercooke (legal).