Foresight ploughs £3m into civil engineering firm

FORESIGHT Group has invested £3m into Manchester-based Utilities Design & Planning from the Foresight Regional Investment Fund.

UDP, a provider of civil engineering and traffic management services, offers inspections, planning works and project management of utilities, sewer connections and highways and rail projects.

The company has sales of around £6m and employs 33 people, a number which will increase through the use of sub contractors.

The investment will allow the continued expansion of the business and the ability to capitalise on the significant infrastructure investment in the North West.

UDP was established in 1996 in Salford by the current directors David Hilton and Noel Gallagher who will remain with the business as part of the transaction.

Richard Fraser, former MD at Enterprise will join as non-executive chairman, and David Atherton former FD at Amey Plc, will join as finance director to support the existing management team.

This is the third investment from the £40m FRIF which is led out of Foresight’s Manchester office and invests in high growth SMEs in the North West region.

Dave Hilton, managing director UDP, said: “The Manchester market is fast providing more opportunities for expansion with focus on a growing economy and infrastructure. Foresight’s support will allow us to engage with this growth in activity through driving sales, and by expanding services into adjacent geographies to meet emerging demands.”

UDP’s clients include Transport for Greater Manchester, Manchester and Salford City Councils, Greater Manchester Police and property developer Argent.

Claire Alvarez, senior investment manager, Foresight added: “UDP has demonstrated strong growth in recent years, and is a great example of the type of SME that we look for in the FRIF.”

Foresight WAS advised in the transaction by a team from Addleshaw Goddard led by Katie Simpson and Andy Green with financial due diligence provided by Stephen Green’s team at RSM, commercial diligence carried out by Roger Penny of RPL and management due diligence carried out by Mike Hicks of Catalysis.

The vendors were advised by Lauren Roberts from HURST’s Corporate Finance team with Paul Brown and James Thompson of HURST providing tax advice whilst Mark Heppell of JMW provided legal advice to the sellers.

Yorkshire Bank Specialist and Acquisition Finance provided funding to support the transaction led by Michelle Heptinstall and Neil Mcloughlin.