FMG growth backed by Aberdeen investment
YORKSHIRE-BASED FMG Support, the UK's largest independent fleet performance improvement company, is poised for major growth after a significant investment by private equity player Aberdeen Asset Managers.
The Huddersfield firm, which has a turnover of almost £70m and employs more than 350 people, has seen Aberdeen Asset Managers Private Equity (AAMPE) invest £7m for a “significant minority stake”.
In addition Lloyds TSB Corporate Markets acquisition finance team is providing enhanced banking facilities to assist FMG chief executive Nick Brown, and the management team – seven of whom will become new equity holders – to deliver ambitious growth plans.
FMG Support provides a range of outsourced services to help its blue chip customers to manage the performance of their vehicle fleets, including incident management, roadside repair and recovery management and vehicle rental management.
The business has grown rapidly in recent years, in particular through securing a position as the preferred outsourced provider of incident management services to a number of the UK's major vehicle leasing intermediaries including LeasePlan, Masterlease and GE Commercial Finance Fleet Services.
Increasing regulations governing company car fleets has seen a growing trend of firms outsourcing fleet management to specialist providers.
Colin Stirling and Craig Hopwood led the deal for Aberdeen and Mr Stirling will join the FMG Support board. Lloyds TSB were represented by Rob Lawrence and Simon Dixon.
Mr Stirling, director of Investment at AAMPE, commented: “FMG Support is a high quality business which we have been shadowing for some time and we are really pleased to have the opportunity to support the team in the next phase of development. We believe the niche which the business serves has positive legislative and regulatory dynamics and are confident that FMG Support delivers service levels which offer a real competitive advantage.”
Mr Brown, of FMG Support, said: “We are delighted to have secured Aberdeen as a partner to work with us to continue the strategic development of the business. The new investment has provided FMG Support with the financial base required to deliver the full potential of the strong competitive position which has been established over recent years and will enable us to continue to open up new end markets for our services.”
The transaction represents AAMPE's third investment in the region in the last 12 months following on from regeneration specialist EDSR in February 2007 and oil and environmental services provider Adler and Allan in June 2007.
Advice for the deal was all provided from the Leeds market place.
The company was advised by KPMG (Xavier Woodward), DLA Piper (Stephen Atkinson) and Propaganda's Brand Multiple (Julian Kynaston).
Aberdeen was advised by Walker Morris (Debbie Jackson) and Lloyds TSB Corporate Markets by Addleshaw Goddard (David Handy).
Xavier Woodward, director corporate finance, KPMG, added: “FMG Support is a business which is very strongly values-driven. We worked hard with Nick and the team to find a funding partner whose culture complemented that of FMG Support. I firmly believe that this is an excellent deal for both Nick and Aberdeen.”
