£160m acquisition deal and private equity backing for crane rental business

Wakefield-based AFI-Uplift, a powered access specialist offering machine rental and sales alongside training and health & safety courses, has acquired Facelift (GB).

The business has also secured new long-term financing from Pricoa Private Capital. The overall deal size for the combined transactions is worth about £160m.

Facelift is an established powered access rental business, with a strong background in the truck-mounted platform market. It reported revenues of £12m for 2018 and has a total rental fleet of over 700 machines.

AFI plans to retain and develop the Facelift brand, with Paul Standing, Facelift Managing Director, set to join the AFI board following the acquisition.

The acquisition takes AFI’s UK rental fleet to 7,500 machines and allows AFI to substantially add scale to its existing business.

The acquisition of Facelift will strengthen AFI’s offering in the self-drive truck and van mounted platform markets and is an excellent geographic fit to Wilson, AFI’s existing truck mounted business.

It marks an important step in the development of the business, as it delivers an exit for Rutland Partners, marking the end of a partnership spanning over six years. Having invested in AFI in a complex three-business combination deal in 2013, Rutland has supported the company’s significant growth initiatives of recent years.

Pricoa will invest £60m through a combination of debt and equity. The transaction has been led by the current AFI management team, led by David McNicholas and Chairman David Shipman, and delivers them control of the Group through a significant majority stake.

AFI has also reported a good year of trading for 2018, with a strong rise in EBITDA despite a challenging year for the industry. It says revenues for the enlarged group will be over £100m.

Following today’s announcements, David McNicholas, Chief Executive Officer of AFI-Uplift, said: “We are really pleased to be adding the Facelift business and a strong team of experienced people to the Group.

“It’s a complementary fit to our existing business, allowing us to consolidate our position in the truck-mounted access market and strengthen our self-propelled mobile elevating work platform business.

“We are excited to welcome Pricoa as our new financial backer, knowing they share our vision for the potential to develop the business from here. We are hugely grateful for the support and advice from Rutland, which has allowed us to achieve a significant amount over the last six years.”

Gordon Leicester, founder and majority shareholder of Facelift, said: “We are delighted to have completed the sale of Facelift to AFI.  The Facelift business has been built over 30 years and this deal will see AFI continue to support the business in the next stage of its development.”

Ed Jolly, Managing Director at Pricoa, said: “We are delighted to have secured a relationship with the strong management team at AFI, a business we have followed for some time.

“We share management’s view of the great opportunities that lie ahead and look forward to playing a part in the continued development of the Group in the UK and the Middle East.”

Oliver Jones, of Rutland Partners, said: “We have enjoyed a successful relationship with the team at AFI over the past six years and are pleased that we have been able to support the business to double in size, and broaden its service offering and geographic footprint since our original investment.

“We wish David and his team all the best for the future.”

DSW Corporate Finance advised AFI on the acquisition and management in respect of the Pricoa investment. Roger Esler at DSW said: “AFI has grown progressively over many years both organically and through acquisition.

“The new debt and equity investment from Pricoa is the next stage in AFI’s journey, facilitating the acquisition of Facelift, and empowering management to take the group to new levels.

“DSW is delighted to have played a part in both these transactions, and congratulate management on achieving this milestone.”

Addleshaw Goddard’s Leeds Corporate team also advised AFI-Uplift on the deal.

Meanwhile, Anil Gupta, Partner at Deloitte, said: “We are delighted to have supported the shareholders of AFI on this transaction.

“We have enjoyed a fantastic relationship with David and the wider management team for over 15 years, and wish them every success as they grow the business further with support from both its existing and new financial backers.”