May Gurney has taken over TransLinc,originally part of Lincolnshire County Council and now the UK's leading provider of specialist fleet management and passenger services to the public sector. TransLinc manages more than 2,800 specialist vehicles from 20 locations for more than 40 customers, mostly public sector. TransLinc's acquired order book is £85m.
May Gurney has paid a cash consideration of £34.9m for the equity and loan notes of the business. In addition, it will assume approximately £30.7m of customer contract-backed fleet financing obligations.
The deal marks May Gurney’s entry into the UK's £730m local authority specialist fleet services and £3bn local authority passenger services markets.
The company said that the acquisition strengthened its market positions in highways maintenance and environmental services, as the provision and maintenance of vehicles is increasingly included in 'bundled' tenders, and augmented its existing plant management expertise.
May Gurney chief executive Philip Fellowes-Prynne said: "This acquisition is a good strategic fit and is expected to be earnings enhancing in the first year. It brings into the May Gurney Group a portfolio of services and clients which are highly complementary to our existing business, augmenting our strong positions in highways and environmental services as well as further establishing the group as the leading support services business in the UK. We look forward to working with the TransLinc team to deliver continued positive returns to all our stakeholders".
For the year to 28 February 2011, TransLinc achieved earnings before interest, tax, depreciation and amortisation of £17.6m on revenues of £34.7m, with EBITA in the year of £5.3m. At completion, TransLinc had total assets of approximately £53.6m.
TransLinc has more than 400 employees and is led by an experienced management team headed by managing director Paul Wood along with regional directors David Foulds, Joe Cleary and Mark Werrell who will be joining the May Gurney business with new incentives in the deal to grow the specialist fleet services business.