LDC completes Eve deal

EVE Trakway, the business which helped ensure the long-term future of the Glastonbury festival by preventing ‘fence jumpers’, is targeting further rapid growth after completing a deal with mid-market private equity house LDC. 

The Chesterfield-based company is Europe’s leading supplier of temporary vehicle and pedestrian access equipment used in major rail, communication and utilities infrastructure projects and high-profile outdoor events.

The business supplies roadways, footpaths, bridges, crowd control barriers and ground protection systems which have been used on a diverse range of projects including Live8, the RHS Chelsea Flower Show and the London Marathon.

It also developed the four metre-high, 7.5 km long Super Fortress Fence used at the Glastonbury festival since 2002 to curtail the practice of ‘fence jumping’ which was threatening the viability of the festival.

Eve Trakway has now secured the backing of private equity house LDC which has invested an undisclosed sum for a minority stake in the business.

The deal, which was led by John Swarbrick and Alex Bowden from LDC’s Yorkshire office, will provide the capital required to continue developing the company’s products and services and ensure funding is available to acquire complementary businesses.

David Hardless and Jill Bolton of Park Place Corporate Finance in Leeds acted as lead advisors on the deal whilst the acquisition finance team within Lloyds TSB Corporate Markets provided senior debt and working capital facilities.

Jonathan Jones, Paul Mann and Rebecca Lewis-Davies of Hammonds provided legal advice to the management team on the deal and legal and banking due diligence.

Mr Jones said: “This is a business with an excellent management team, they are looking for acquisitions and I’m sure they will continue to grow in the future.”

Founded 40 years ago, in April 2006 Eve Trakway was the subject of a management buyout (MBO) from support services firm Babcock led by managing director Rick Barnett and finance director Chris Lowton.

Since then the team has grown sales by nearly 27% to £16.5m and is targeting a further 60% growth in turnover over the next four years.

The business currently employs 150 people across its offices in Chesterfield, Lanark and Wimbledon and operates a fleet of 30 large goods vehicles.

It has strategic partnerships with firms in Germany, Ireland and France to provide access systems to European locations in short delivery times.

Rick Barnett, managing director of Eve Trakway, said: “Since the buyout we’ve focused on developing strong, long-term customer relationships by continuously expanding our hire fleet and creating a suite of complementary management services.

“We’ve now reached the stage where an acquisitional strategy is the best route to gaining the scale and expanded range of products needed to fully capitalise on the huge potential this firm has.

“We were keen to partner with LDC as, in addition to providing funding, their relationship-based approach will ensure we can draw on their experience and track record of successfully building businesses through acquisitions and simultaneous organic expansion.”

John Swarbrick, director at the Leeds office of LDC, said: “With positive dynamics in a number of its core markets and a highly professional management team, Eve Trakway is ideally positioned for growth. 
 
“Demand for its services is being driven by an industrial sector which is committed to investing in infrastructure and a market for concerts, festivals and non-music events which is experiencing double digit year-on-year growth.

“Our approach to private equity investment will ensure management has the necessary support to identify, target and execute potential acquisitions whilst providing crucial support for the post-deal integration of the businesses.”

Simon Dixon, associate director, Lloyds TSB Corporate Markets acquisition finance, said: “Eve Trakway boasts a strong management team who have built the business into a leading supplier involved in major infrastructure projects and high profile events.

“The deal with LDC is a great example of how a growing business can bring on board a private equity investor to access the funding and strategic input required to take the business to the next level.

“We worked closely with our colleagues in LDC to ensure we put together a package which suited the requirements of the transaction and Eve Trakway’s ongoing growth strategy.”