Traffic management firm secures £8m in fund manager’s largest ever investment

Mercia Fund Managers has invested almost £8m into a traffic management business in its largest single transaction to date.

The investment in Total Resources UK includes growth, debt and venture funding and will allow the business to expand its existing depot network across the UK, creating up to 100 jobs.

Total Resources, which is based in Boldon in South Tyneside with depots in Kidderminster, Gateshead, Haydock, Leeds, Mansfield and Essex, provides services ranging from the design and installation of temporary traffic management schemes to portable traffic light hire.

Established in 2015, it employs more than 110 staff and serves customers in the utilities and highways sectors including SSE, Northumberland Water, Kier and Murphys.

The investment will provide an exit for one of the founders, John Smart, giving control of the business to the existing management team led by CEO Les Thompson.

Thompson said: “We have exciting growth plans for the business and are looking forward to working with Mercia to put them into place. The investment will enable Total Resources to become a major force in the highways sector with depots nationwide.”

Wayne Thomas, Matt Molyneux, Chris Pestell, Jan Oosthuizen and Ian Wilson from Mercia worked on the deal.

Thomas, who leads the EV Growth team and led the transaction, said: “Although Total Resources is a relatively new business, the management team have a long history within the sector and we have been impressed by their knowledge and progress so far. The business has grown on the back of a strong commitment to customer service and delivery which will help to propel its growth over the coming years.”

Paula McGrath and Andrew O’Mahony of Brabners advised newco.

Craig Scott of Hill Dickinson provided legal advice to Mercia. Financial due diligence was carried out by Sentio Partners.