Palatine invests in NRG

Katharine Hidalgo
01 October 2020

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Palatine Private Equity has taken a majority stake in NRG Fleet Services.

This is the firm's first investment from its Palatine Private Equity IV fund, which was registered in February 2019 with a target of £300m. Palatine buyout funds invest £10-30m per deal.

Following the investment, the company will follow a buy-and-build strategy and develop its services, including the delivery of electric vehicles to the waste industry.

NRG's existing shareholders, chairman Sid Sadique and chief executive Steve Richardson, will remain with the business following the transaction. Palatine has also facilitated the appointment of Steve Dolton as executive chairman. In addition, James Winterbottom and Palatine investment director Tom Wildig have joined the board of NRG.

Company
Headquartered in Skelmersdale, Lancashire, and operating 10 national technical centres, NRG has annual revenues of £90m and employs 280 people. Founded in 2006, it comprises two divisions: Riverside Truck Rental and Direct Tyre Management. It provides fleet management services to the UK waste industry, including leasing and maintenance services across a suite of specialist vehicles like refuse collection vehicles and road sweepers.

People
Palatine Private Equity – James Winterbottom (senior investment director); Tom Wildig (investment director).
NRG Fleet Services – Steve Richardson (CEO).

Advisers
Equity – Deloitte, Jeremy Thomas, Anil Gupta (corporate finance); DWF, Jonathan Robinson (legal); OC&C (commercial due diligence).
Vendor – Rothschild, Andy Thomas (corporate finance); Gateley, Rebecca Grisewood (legal).