May Gurney has bought TransLinc, a provider of specialist fleet and passenger services to local authorities in a deal worth nearly £66 million.
Under the terms of the transaction, May Gurney has paid £34.9 million cash for the equity and loan notes of the business. In addition, the company will assume approximately £30.7 million of customer contract-backed fleet financing obligations.
Philip Fellowes-Prynne, chief executive of May Gurney, 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.”
Originally part of Lincolnshire County Council, TransLinc is now the UK’s leading provider of specialist fleet management and passenger services to the public sector.
Managing over 2,800 specialist vehicles from 20 locations for over 40 customers, TransLinc has worked across these sectors for over 30 years.
For the year to February 28, 2011, TransLinc achieved earnings before interest, tax, depreciation and amortisation of £17.6 million on revenues of £34.7 million, with EBITA in the year of £5.3 million. At completion, TransLinc had total assets of approximately £53.6 million.
TransLinc employs over 400 employees and is headed by Paul Wood, the managing director, along with David Foulds, finance director and director of Southern Operations; Joe Cleary, director of Northern Operations; and Mark Werrell, director of Midlands Operations.
The TransLinc management team will be joining the May Gurney business and under the terms of the deal are incentivised to drive the combined TransLinc/May Gurney specialist fleet services business forward.