Equistone Partners exits AFI-Uplift
EQUISTONE Partners Europe has exited its investment in AFI-Uplift, the powered access equipment company, in a transaction that involves the simultaneous acquisition of two smaller businesses at a total deal value of £85m.
The deal sees Rutland Partners acquire a majority stake in Wakefield-based AFI-Uplift, while AFI has also acquired two separate but complementary businesses: Hi-Reach and Access Rental Gulf.
Access Rental Gulf (ARG), based in the United Arab Emirates, is owned by its management team and is a leading powered access equipment rental business in the Middle East with a fleet of 400 machines.
Hi-Reach is a privately owned, UK-based powered access equipment rental business with eight depots and a rental fleet of 1,500 machines.
Rutland is investing alongside AFI chairman David Shipman and the management team.
Shipman currently leads the teams in both AFI and ARG and will remain as executive chairman of the enlarged operating group.
The transaction cements AFI’s position as a leading operator in the UK powered access rental market, and creates an enlarged group that it says will be “well placed for further growth.”
GE Capital has provided a £50m five year revolving asset based lending facility, with Rutland’s total equity investment post finalisation of completion arrangements expected to be around £32m for a majority holding.
The management team is reinvesting the majority of its existing interests into the enlarged group.
Oliver Jones, partner of Rutland, said: “This complex and simultaneous combination of three businesses, and their planned integration and development, is a prime example of a Rutland deal.
“We are excited about working with David and his team in the months and years ahead to help maximise the opportunities for the enlarged AFI group. We are also grateful for all of the hard work put in over many months by all of the advisers on this transaction, and we look forward to working with AFI’s team to take the business forward into its next phase of development.”
AFI has enjoyed organic and acquisitive growth since Equistone invested in the business in 2006. Turnover has grown from £20m to £32m in 2012 and Equistone has backed AFI in a series of bolt-on acquisitions to increase its UK footprint and service offering.
Steve O’Hare, head of Equistone Partners Europe in the North, said: “During the investment Equistone has worked closely with a strong management team led by David Shipman to develop AFI from a dedicated platform hire provider into a diversified business which also offers extensive safety-related training and machine resale. AFI has expanded in the UK, opening several new depots and making strategic bolt-on acquisitions that mean it is now one of the leading players in the market and is well positioned for further growth.
“Despite its core market being severely affected by the recession, AFI has shown resilience and grown by diversifying its offering. Rutland has experience in equipment hire through its investment in Brandon Hire and so we believe it is well placed to nurture AFI and the enlarged group through its next phase of growth. We wish them well in the future.”
The corporate finance advisory team at Deloitte’s Leeds office advised AFI on the deal. The team comprised partner Paul Trickett, director Paul Roberts and manager Matthew Cheetham.
In addition, Deloitte’s Northern debt advisory team advised AFI on the raising of a debt package from GE for the deal.
The team was led by Manchester-based partner Nigel Birkett with support from managers Susie Power and Jonathan Petty.
Legal advice came from by Addleshaw Goddard in Leeds, which provided AFI with corporate finance and banking legal advice in a team led by corporate finance partner Garry Elliott with support from associates Dahren Naidoo and Susie Siddall and legal director Georgina Tripp.
