Refuse truck fleet specialist under new ownership after Palatine exit
Private equity firm, Palatine, has exited Skelmersdale-based specialist fleet solutions provider NRG Riverside with a sale to Astatine Investment Partners, for an undisclosed sum.
Palatine has divested NRG, which leases and maintains specialist vehicles, such as waste collection trucks, to local authorities and private authorities, following a period of significant investment in its people and operations and impressive revenue growth.
Astatine Investment Partners is a specialist private equity investor focused on infrastructure investments.
Palatine originally acquired a majority stake in NRG Group in October 2020. It then separated NRG Riverside from its former sister company, Direct Tyre Management (DTM), appointing new management teams allowing both businesses to focus on delivering independent sales strategies, digital roadmaps and operational efficiencies.
DTM remains a part of the Palatine portfolio and continues to deliver strong growth and progress its value creation plan.
As a standalone company NRG Riverside has seen revenue grow more than 50% since Palatine’s investment, while staff numbers have increased to more than 220, including more than 100 skilled technicians.
With a total existing fleet of more than 2,000 vehicles, it is the largest provider of specialist refuse collection vehicles (RCVs) in the UK. It has a network of 10 strategically located workshops providing a UK-wide maintenance and servicing footprint and a comprehensive end-to-end fleet hire service proposition.
Tom Wildig, Senior Investment Director at Palatine, praised the progress Riverside has made under the leadership of Darren Powell and his team, saying: “The business has grown into the leading provider of contract hire and leasing in the waste market as well as developing new vertical markets of infrastructure and highways.
“It has a people-centric culture, and has made significant strides in workforce training, development, and retention. The launch of its own apprenticeship scheme in 2022 was something we were delighted to support.”
He added: “NRG is now well positioned to capitalise on compelling market dynamics, including zero emission fleets.”
NRG Riverside CEO, Darren Powell, said: “Palatine has been an excellent investment partner for us, helping us to grow and become a more sustainable company. We look to the future with confidence and with a clear plan for further growth.
“With recent internal promotions to further strengthen our experienced leadership team, we continue to offer the best customer-led experience from initial enquiry to vehicle delivery and future renewal. The growing relationships with our customers and their operations mean we are also well placed to support the important transition to net zero emissions.”
Powell spoke at the Rainmakers conference 2024 saying of Palatine’s support: “We’ve had nothing but really good experiences with advisory firms here.
“A lot of people have been tightening their belts but with support from Palatine we could invest £13m a year in new stock.
“It could have been a different story if they didn’t have that trust in our business plan.”
Drawing on Palatine’s expertise in sustainable investing, NRG Riverside established an ESG Charter in late 2022, which sets out a sustainable and measurable plan to lessen its environmental impact and support its local communities and workforce.
Palatine was advised by Deloitte Corporate Finance (Andy Westbrook, Jeremy Thomas and Alex Kirkby), Gateley (Rebecca Grisewood, Kate Richards and Adam Noble) with PWC (Sid Hussain, David Tomlinson and Nick Breeze) providing financial due diligence.
Astatine worked with Hogan Lovells as legal counsel, Alvarez & Marsal for financial and tax diligence, and Roland Berger for commercial due diligence.
