Rutland picks up Equistone’s AFI-Uplift

The deal comprises the simultaneous acquisitions of AFI-Uplift and its two separate businesses, Hi-Reach and Access Rental Gulf. Rutland invested alongside AFI chairman David Shipman and the management team. 

GE Capital provided a £50m five-year revolving asset-based lending facility. Rutland's total equity contribution is expected to total £32m following the deal completion. The management team is reinvesting the majority of their existing holdings into the newly combined group.

Following the deal, the enlarged group will operate across the UK and in the Middle East. For the first time the business will be able to move surplus equipment in the UK over to the Middle East.

Equistone purchased AFI in 2006 for £15m in a deal that saw AFI Aerial Platforms merge with Uplift Platforms. The company's turnover has since then increased from £20m in 2006 to £32m in 2012.

According to Rutland partner Oliver Jones, a process to refinance the AFI business began last year however, the turnaround house saw an opportunity to do something more ambitious. "It was a very complex deal and one that wasn't originally on the table. It was made more complicated by the different ownership structures - the Middle Eastern business was not owned by Equistone."

Despite stagnation in the UK construction sector since the financial downturn, Jones is optimistic towards AFI's growth prospects. "The company sits in a sector that is here to stay and platform hire is becoming more important as legislation continues to drive growth in this area." Furthermore, one of the key attractions to the deal was exposure to the growing Middle Eastern market through the Access Rental Gulf business.

Rutland's simultaneous purchase of three businesses with individual ownership structures marks a new era of deal making, whereby investment mandates no longer pile up on desks. Instead, deal-doers are more creative spotting opportunities where others don't and deals are increasingly complex.

Company
Wakefield-based AFI provides powered access rental equipment, offering 3,700 machines from its 18 depots across the UK. The company also provides related services including safety training and the resale of ex-fleet and third-party sourced machines. Both companies operate in the construction and infrastructure maintenance sectors.

Access Rental Gulf is based in the United Arab Emirates and also provides powered access equipment rentals. The company has a fleet of 400 machines for hire across the Middle East.

UK-based Hi-Reach provides powered access equipment rentals from its eight depots and fleet of 1,500 machines.

People
AFI chairman David Shipman will remain as executive chairman to the newly combined group. Rutland partner Oliver Jones, investment director David Wardrop, investment executive Kajen Mohanadas and managing partner Nick Morrill worked on the deal.

Advisers
Company – Deloitte (Leeds), Paul Trickett, Paul Roberts, Matthew Cheetham (Corporate finance); Deloitte (Manchester), Nigel Birkett, Susie Power, Jonathan Petty (Debt); Addleshaw Goddard, Garry Elliott, Yunus Seedat, Dahren Naidoo, Georgina Tripp, Susie Siddall (Legal); PwC, Andy Smith, Ben Smith, Sophie Rigby (Tax).
Equity – DC Advisory, Richard Pulford, Ben Thompson (Financial due diligence); Taylor Wessing, Nick Hazell, Ed Waldron, Martin Yells, Tim Davidson (Legal); Litmus, Dave Edwards, Nick Grainger (Debt).
Vendor – PwC, Nigel Ward, Jason Davis (Financial due diligence); Chris Temple, David Smith (Commercial due diligence); Kimbells Freeth, Jonathan Hambleton, Natalie Drought (Legal); KPMG, Leigh Davenport, Andrew Halliday, Chris Barnes (Tax).

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• Topics
• Exits
• Buyouts
• UK / Ireland
• Industrials
• Rutland Partners
• Equistone Partners Europe
• United Kingdom
• Secondary buyout