Primary Capital exits Readypower in trade sale

The trade sale was run by financial services firm Alantra.

Primary Capital acquired the business in a management buyout in 2017 for an undisclosed figure. The GP invested through Primary IV, which held a final close in July 2015 on GBP 225m, surpassing its target of GBP 200m, after just a year on the road, according to Unquote Data. The fund deploys equity of around GBP 10m-45m targeting management buyouts and buy-ins of companies with enterprise values of around GBP 20m-100m, across several sectors, including the services sector and industrial products. The GP's predecessor vehicle, Primary III, sold rail tour company Amber Travels to ECI Partners for GBP 50m in April 2013, netting a 3.2x return, according to Unquote Data.

Accounts show that Readypower had a turnover of GBP 41m in 2021, up by 1% from 2020.

Alistair Armstrong, partner at Primary Capital, told Unquote: "It was the right time for the business to move on. Angel Trains can continue and accelerate the investment we made in the business, as it has great reach in the sector."

The original investment was a result of direct origination, according to Armstrong. The core strategy to build value was geographical expansion, he said, noting that the business was strong in the south of England at the time of the investment. During Primary Capital's tenure, Readypower expanded from one main hub to six across the UK and now serves the rail market across the country. The GP also invested in new equipment so that the company can offer a broader range of services to its customers.

Armstrong remarked on what prompted the exit: "The rail infrastructure market is really positive and has a lot of large projects in that area making it an attractive segment."

Armstrong did not disclose financials and whether other exit routes were explored.

Angel Trains is a UK-based business that owns and maintains 4,000 rail vehicles, according to its website. It is backed by Amber Infrastructure and the Public Sector Pension Investment Board. The company will support Readypower's growth by investing in the latest equipment and technology, according to a press release.

Company
Readypower is an asset hire business operating in the rail and infrastructure sector with a specialist civil engineering segment. The business employs 280 people and is headquartered in Berkshire.

People
Readypower – Russell Jack (CEO).
Primary Capital – Alistair Armstrong (partner).
Angel Trains – Malcolm Brown (CEO).

Advisers
Vendor – Pinsent Masons (legal); KPMG (tax); CIL (commercial due diligence); Alantra (corporate finance).
Acquirer – Investec Bank (corporate finance).

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• Topics
• Exits
• UK / Ireland
• Infrastructure
• Trade sale
• United Kingdom
• Primary Capital